According to an internal document, the CEO of Indian education platform Byju is sure that the country’s financial crime-fighting agency would find the firm compliant following raids on its locations for potential violations of foreign currency regulations.
Byju was originally valued at $22 billion, making it one of India’s largest startups. Global investors such as BlackRock, General Atlantic, and Sequoia Capital have made investments in the firm throughout the years.
We are confident that the authorities will reach the same conclusion because we are funded by 70+ impact investors who have done satisfactory due diligence on our operations, including all FEMA (Foreign Exchange Management Act) compliance, said CEO Byju Raveendran in a memo seen by Reuters late Saturday.
Byju did not immediately reply to a request for comment.
On Saturday, the Enforcement Directorate of India searched three locations associated with the firm for alleged breaches of foreign currency laws.
According to the agency, the searches indicated that Byju’s parent company, Think & Learn Pvt Ltd, received roughly 280 billion rupees ($3.43 billion) in foreign direct investment between 2011 and 2023.
The agency further stated that between 2011 and 2023, the corporation sent 97.5 billion rupees to various foreign jurisdictions in the guise of overseas direct investments.
Raveendran stated in the internal communication that the corporation had shifted some money offshore to support its foreign acquisitions.
He said that the corporation had made every attempt to comply with foreign currency legislation and that all cross-border transactions were conducted through legitimate banking channels.
I want to reassure you that we are completely collaborating with the authorities, said Raveendran, who added that all necessary documents and statutory files had been provided to the Enforcement Directorate.