Edtech startup BYJU’S has denied the reports of an inspection by the Ministry of Corporate Affairs (MCA). The spokesperson said that the company has not received any correspondence from the MCA regarding an inspection, and is not aware of any such inspection, reported CNBC-TV18.
The clarification from BYJU’S came after it was reported across media that MCA has ordered an inspection of the edtech startup, citing concerns over corporate governance lapses.
On Jun 22, Byju's hired BDO (MSKA & Associates) as statutory auditors as Deloitte Haskins & Sells exited as Byju's auditor with immediate effect amid a legal battle and following an investor slashing the valuation of the edtech firm.
As per the resignation letter, Deloitte stepped down with "immediate effect" mid term, citing "long delayed" financial statements by the company.
Meanwhile, another report said three board members of Byju's - Peak XV Partners's (earlier Sequoia Capital India) GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have resigned from the board.
A Byju's spokesperson, however, termed the news of the resignations "entirely speculative". The company firmly denies these claims, the spokesperson further said, adding significant developments or changes within the organisation are shared through official channels.
Byju's, which saw its valuation slashed to $8.4 billion from $22 billion last year, is in a dispute with lenders, who allege the company hid $500 million, leading it to sue Redwood management, one of its lenders.
It has also been reported that the edtech startup has started laying off staff across departments as a cost-saving measure amid increased tension with lenders. The company’s HR team held individual discussions over phone calls and in-person meetings at its offices on June 16 to communicate the layoffs to employees from various departments, such as mentoring, logistics, training, sales, post-sales, and finance.
BYJU'S is expected to fire more than 1,000 employees, mostly senior staff who have spent over 2 years with the company.
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