Byju's Ordered To Pay Rs 9000 Crore Penalty For Violating Foreign Funding Laws Between 2011 & 2023; Byju's On Backfoot, Again


Sheetal Bhalerao

Sheetal Bhalerao

Nov 23, 2023


In a latest revelation, the Enforcement Directorate (ED) has issued a notice to edtech major Byju’s, asking it to pay Rs 9,000 crore for allegedly violating foreign funding laws, said the sources.

Byju's Ordered To Pay Rs 9000 Crore Penalty For Violating Foreign Funding Laws Between 2011 & 2023; Byju's On Backfoot, Again

How Did This Happen?

Although, the Indian edtech unicorn has denied receiving any such communication from the authorities.

Byju’s received foreign direct investment (FDI) of around Rs 28,000 crore between 2011 and 2023, said the sources in the ED.

The edtech major, the sources said, remitted around 9,754 crore to foreign jurisdictions during the same period in the name of overseas direct investment.

Contrary to that the edtech major has posted on its official X handle that it has not received any such communication. 

The company’s statement said, “Byju’s unequivocally denies media reports that insinuates Byju’s of any FEMA violation. The company has not received any such communication from authorities.” 

The Unraveling Of India’s Most Valued Startup

It seems that ED’s notice is the latest development in the unraveling of what was India’s most valued start-up at one time.

If we go back in history, Byju’s parent company, Think and Learn Private Limited, was set up by engineers and teachers Byju Raveendran and his wife Divya Gokulnath in 2011. 

They offered online learning programmes for competitive exams initially.

Afterworld, the company launched the Byju’s learning app during 2015, their first step in what became a steep growth curve.

Next they launched a math app just two years later for children and another to help parents track their kids’ progress. 

In the next three years, Byju’s had over 1.5 crore users by 2018 as the company reaches millions of homes in small cities and rural areas. 

But, the company’s game totally changed when the app’s popularity got a massive boost during the Covid pandemic, as schools were shut and children had to shift to a digital mode of education.

But after returning to the normalization post Covid days, its downturn began, posting a massive loss in 2021, its value declined gradually. 

The company came on the radar of law enforcement agencies too.

The edtechs swift unraveling caused among the reasons cited behind is a massive acquisition spree that became a liability when children returned to schools and business dropped after the pandemic.

Besides this, Byju’s has also faced serious allegations regarding its functioning. 

For instance, parents have accused the edtech major of coercing them into buying expensive courses and then backtracking on promises.

Not only that, the edtech company has also faced allegations of treating its employees  poorly and made headlines for laying off thousands as it tries to cut costs.

The ED raided Byju’s office in Bengaluru earlier this year  over suspected violation of laws that govern foreign funding.

Byju’s troubles are not getting over the company has also faced trouble overseas after lenders moved a US court, accusing Byju’s of defaulting on payments and breaching loan agreements.

Lateron,  the edtech major sued the lenders, accusing them of harassment.


Sheetal Bhalerao
Sheetal Bhalerao
  • 827 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online