![](https://i.imgur.com/CLvY2jA.png")
03-05-2023, 11:09 AM
Rohini Mohan
India Correspondent
UPDATED MAY 2, 2023, 6:57 PM SGT
BENGALURU – Byju’s, the world’s most valuable edtech start-up, was raided at the weekend by India’s financial crimes investigator and accused of foreign exchange violations, adding to the firm’s other challenges such as charges of unethical marketing.
The company, founded in 2011, has also had to let go of thousands of staff in a bid to rein in losses.
......
the company “has not prepared its financial statements since 2020-21 and has not got the accounts audited, which is mandatory. Therefore, the genuineness of the figures provided by the company is being cross-examined from the banks”.
The agency added that the raid was conducted on the basis of “various complaints” it had received from individuals. It noted that Mr Raveendran was summoned several times but remains “evasive and never appeared” before the ED.
......
the fast-growing edtech giant faces complex financial troubles, evident in the recent layoffs of thousands of employees and delayed filing of financial statements.
Byju’s filed audited statements for the fiscal year 2020-21 after a delay of 18 months, after the Ministry of Corporate Affairs issued notices to the company. But it has yet to announce results for the year ended March 31, 2022.
......
In 2022, Byju’s announced it was one of the sponsors for the Fifa World Cup, but it also launched a cost-cutting drive to stem losses by laying off around 4,000 employees.
......
In the last 18 months, several other Indian start-ups have also come under scrutiny for alleged misconduct and fraud.
The income tax department found that founders of digital payments platform BharatPe had used shell companies and round-tripping to evade taxes and launder money. Zilingo, an e-commerce platform founded in 2015 to digitise South-east Asia’s fashion supply chain, saw employees leave and its valuation crash after the authorities found over-reported revenues and fabricated invoices.
https://www.straitstimes.com/business/in...other-woes
India Correspondent
UPDATED MAY 2, 2023, 6:57 PM SGT
BENGALURU – Byju’s, the world’s most valuable edtech start-up, was raided at the weekend by India’s financial crimes investigator and accused of foreign exchange violations, adding to the firm’s other challenges such as charges of unethical marketing.
The company, founded in 2011, has also had to let go of thousands of staff in a bid to rein in losses.
......
the company “has not prepared its financial statements since 2020-21 and has not got the accounts audited, which is mandatory. Therefore, the genuineness of the figures provided by the company is being cross-examined from the banks”.
The agency added that the raid was conducted on the basis of “various complaints” it had received from individuals. It noted that Mr Raveendran was summoned several times but remains “evasive and never appeared” before the ED.
......
the fast-growing edtech giant faces complex financial troubles, evident in the recent layoffs of thousands of employees and delayed filing of financial statements.
Byju’s filed audited statements for the fiscal year 2020-21 after a delay of 18 months, after the Ministry of Corporate Affairs issued notices to the company. But it has yet to announce results for the year ended March 31, 2022.
......
In 2022, Byju’s announced it was one of the sponsors for the Fifa World Cup, but it also launched a cost-cutting drive to stem losses by laying off around 4,000 employees.
......
In the last 18 months, several other Indian start-ups have also come under scrutiny for alleged misconduct and fraud.
The income tax department found that founders of digital payments platform BharatPe had used shell companies and round-tripping to evade taxes and launder money. Zilingo, an e-commerce platform founded in 2015 to digitise South-east Asia’s fashion supply chain, saw employees leave and its valuation crash after the authorities found over-reported revenues and fabricated invoices.
https://www.straitstimes.com/business/in...other-woes
