File picture of Byju’s founder Raveendran Byju. The schooling platform’s CEO in an inner memo mentioned Byju’s has satisfactorily carried out due diligence on all FEMA operations and is “confident that the authorities will also come to the same conclusion”, after ED searched the start-up’s premises on April 29, 2023.
| Photo Credit: The Hindu
After monetary crime-fighting company ED searched Byju’s premises, the schooling platform’s CEO Raveendran Byju wrote to staff saying the company brought more FDI to India than any other startup and that the agency absolutely complies with all relevant overseas trade legal guidelines.
India’s most respected startup, Byju’s was as soon as valued at $22 billion and has attracted world traders reminiscent of General Atlantic, BlackRock and Sequoia Capital.
“As we are funded by 70+ impact investors who have satisfactorily done due diligence on our operations, including all FEMA (Foreign Exchange Management Act) compliance, we are confident that the authorities will also come to the same conclusion,” Mr. Raveendran mentioned in the memo despatched late on Saturday, which was seen by PTI.
ED had on Saturday searched three premises in Bengaluru linked to the company over alleged overseas trade regulation violations. Searches at ‘Think & Learn Private Limited’ (Byju’s on-line studying platform) yielded “various incriminating documents and digital data was seized”, ED had mentioned.
The agency had acquired overseas direct funding of almost ₹28,000 crore between 2011 and 2023, the company had mentioned, including the agency remitted ₹Rs 9,754 crore to varied overseas jurisdictions throughout the identical interval in the identify of abroad direct investments.
In the interior memo, Raveendran mentioned that the company had despatched some cash abroad to fund its worldwide acquisitions.
“The recent visit by the ED is an enquiry under FEMA. The information requested by and furnished to the officers in connection with the FDI raised, overseas investments made, and cross-border transactions relating to marketing and branding activities by Byju’s has previously been submitted by our authorised representatives,” he wrote.
Byju’s, he mentioned, made a lot of abroad acquisitions, investing ₹9,000 crore over time as a part of its development technique. “These acquisitions have been instrumental in expanding our reach and impact. In order to fund these acquisitions, we have remitted some of our funding overseas.”
“I also want to highlight that Byju’s has brought more FDI to India than any other Indian startup (₹28,000 crore), and as a result, we have been able to create job opportunities for more than 55,000 talented professionals,” he mentioned. “This makes us India’s largest employer among startups.”
He went on to state that Byju’s has taken all efforts to absolutely comply with all relevant overseas trade legal guidelines.,
“All our cross-border transactions have been duly vetted by both its professional advisors/counsel and advisors/counsel of the investment funds and other sophisticated counterparties,” he mentioned. “Additionally, all such transactions are routed only through regular banking channels/the RBI’s authorised dealer banks and the requisite documentation and statutory filings have been duly submitted.”
He mentioned Byju’s was absolutely cooperating with the authorities.
“As we are funded by 70+ impact investors who have satisfactorily done due diligence on our operations, including all FEMA compliance, we are confident that the authorities will also come to the same conclusion,” he mentioned. “Let us continue to focus on our goals and work together towards achieving our mission.”
