Sarita Rai
Byju’s, India’s most valuable startup, sought to reassure employees and partners after a weekend raid on the offices of an education company by an agency investigating money laundering in the country.
Officials from the Enforcement Administration searched the startup’s offices in Bangalore and seized documents and digital data, the agency said in a tweet. The investigation is under the Foreign Exchange Management Act.
“Byju’s has made every effort to fully comply with all applicable foreign exchange laws and all of our cross-border transactions have been duly verified by both its professional advisors/advisers, investment fund advisors/advisers and other experienced counterparties,” Baiju Ravendran said. the founder and CEO of the startup wrote in a letter to employees.
The investigation comes as the $22 billion company is in talks with investors to raise funds to address a liquidity squeeze. The firm also tried to approach lenders for a $1.2 billion emergency loan restructuring after the once-high-profile start-up missed its March 31 financial filing deadline for the year.
Ravendran wrote that the company has made a number of overseas acquisitions as part of its growth strategy and has moved funds overseas to pay for deals. He added that all transactions were carried out through normal banking channels with appropriate documentation.
More than 70 investors have invested in Byju’s, he said, and they have done a thorough due diligence. “We are confident that the authorities will come to the same conclusion,” he added.
Beau Ravindran, the son of educators, founded his eponymous startup in 2015. The firm, whose parent company is officially known as Think & Learn Pvt, is the largest of a host of start-ups that have thrived over the past decade on the back of growing mobile connectivity in India. and foreign investment.
“Finally, I want to express my gratitude to all of you for your continued hard work and commitment to our mission of transforming education in India and around the world,” Ravindran wrote. “I understand that this news may have caused concern, and I want to assure you that we remain unwavering in our commitment to our students and our vision.”