BYJU faces government scrutiny for not filing FY21 financials

India’s Most Valuable Startup PARJU‘s is under further scrutiny from the government as it has failed to submit its audited Deloitte financial report for the 2021 financial year, even after more than 17 months.

Company inside sources have told IANS that the report is expected soon, possibly next week, but the long delay has now alarmed the Ministry of Corporate Affairs (MCA).

According to sources, the department sent a letter to BYJU earlier this month asking the $22 billion edtech startup to explain the delay in filing its FY21 audit report.

Sources familiar with the development say IPO-linked BYJU has completed business consolidation after “smoothing out complexities” as the edtech unicorn completed at least 10 acquisitions for a cumulative transaction value of about $2.5 billion last year.

According to them, there are “no compliance issues” as the company filed its FY21 tax returns in a “diligent manner”.

BYJU has not commented on the latest development.

In July, Congress MP Karti P. Chidambaram sent a letter to the Serious Fraud Investigation Bureau (SFIO) to investigate the finances of major edtech BYJUs.

Chidambaram called for an investigation into BYJU for failing to file its 2020-21 (FY21) financial results, which the company previously said it would file by July 15, saying it had yet to secure capital of 250 million million (around Rs 2,500 crore) from its most recent funding round in March.

The company, which has come under scrutiny over the past two months over several issues ranging from audit delays to layoffs, made several acquisitions in FY21 and each of those acquisitions had a different accounting style and year.

So far, BYJU’s has raised over $6 billion in funding and aims to file for a U.S. IPO through the Special Purpose Acquisition Company (SPAC).

The company is also reportedly in talks to raise an additional $1 billion as it expands globally.

According to reports, BYJU is eyeing US Nasdaq-listed edtech company 2U for nearly $1 billion at $15 per share.

The company has already “closed” payments related to its $1 billion acquisition of offline test prep service provider Aakash Educational Services.


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