According to news reports on Friday, the corporate affairs ministry of India requested an investigation into the edtech startup Byju’s last week, further complicating circumstances at the most valued Indian startup, which had just lost its auditor and three board members the day before.
According to the news station, which cited anonymous sources, the ministry has been made aware of “various corporate governance lapses” at Byju’s.
The government had previously questioned Byju’s about why business hadn’t submitted its audited financials, prompting the fresh investigation. The edtech company Byju and its creator Byju Raveendran’s three locations were searched by India’s crime-fighting agency in late April, the agency said on Saturday, and numerous “incriminating” documents and digital data were taken.
Last year, after failing to file its financial statements on multiple occasions, Byju’s came under heavy scrutiny from the government, investors, and creditors. Byju’s ultimately released its financial statements in September for the year ending in March 2021, disclosing revenue statistics that were lower than expected.
Deloitte, a global powerhouse, resigned as Byju’s auditor and three board members left the firm on Thursday, shocking the sector. Deloitte submitted its resignation to the board on Thursday and claimed that it has delayed the auditing of the edtech giant’s financial statements for the year ending March 2022.
The firm with its headquarters in Bengaluru, which is also the most valued education technology company in the world, is battling a number of difficulties. It counter-sued its lenders after refusing to pay a $40 million payment earlier this month. According to Byju’s, its lenders were using “bad-faith negotiating tactics.” Byju’s has allegedly officially defaulted on the loan, according to the lenders.
Along with eliminating 1,000 workers, the firm is trying to get its finances in better shape. At the end of March of this year, BlackRock reduced Byju’s valuation by over two-thirds, to $8.4 billion.