'BYJU'S has brought more FDI to India than any other Indian startup,' CEO Byju Raveendran to staff after ED search

After the Enforcement Directorate (ED) searched BYJU's premises, ed-tech founder and CEO Byju Raveendran on Saturday wrote to his employees explaining the company's position. He said the scrutiny was brought upon them because of the extensive foreign funding they have received and the number of overseas acquisitions they have made. 

"We have made a number of overseas acquisitions (investing an amount of approx. Rs. 9,000 crores) over the years as part of our growth strategy," he said in an e-mail. "I also want to highlight that BYJU'S has brought more FDI to India than any other Indian startup (Rs. 28,000 crores), and as a result, we have been able to create job opportunities for more than 55,000 talented professionals. This makes us India's largest employer among startups," Raveendran wrote to his employees.

The ED said on Saturday that the company was being vetted in relation to the foreign direct investment to the tune of Rs 28,000 crore, which the edtech major received during the period from 2011 to 2023. The agency further said that the company remitted Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment.

Despite the concerns raised by the ED, Raveendran tried to reassure his employees saying that the firm had complied with all regulations and all transactions are being vetted by professionals. "BYJU'S has taken all efforts to fully comply with all applicable foreign exchange laws and 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," the note read.

"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. I want to reassure you that we are fully cooperating with the authorities," he added. 

Although Raveendran claims that all rules and regulations are being complied with, it is worth noting that the last financial statements released by the company were for the financial year FY 2020-21, which were submitted after a delay of 18 months. 

Also Read: ED searches 3 BYJU's premises under FEMA, seizes documents and data - BusinessToday

Also Read: BYJU’S says ‘business as usual’ after ED conducts searches at edtech firm’s premises - BusinessToday