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BYJUs come under government scrutiny for failing to file FY21 financials

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India’s Most Valuable Startup BYJUThe company faces increased scrutiny from the government for failing to submit its audited Deloitte financial report for fiscal year 2021, even after more than 17 months.



Insider business sources told IANS the report is expected soon, perhaps next week, but the long delay has now Ministry of Business Affairs (MCA).

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

The IPO-bound BYJUs, according to sources aware of the development, have completed business consolidation after “getting rid of the complexity” as the edtech unicorn made at least 10 acquisitions last year for a cumulative transaction value of approximately $2.5 billion.

They say there are “no compliance issues” as the company filed its FY21 tax returns in “discreet fashion.”

BYJUs have not commented on the latest development.

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

Chidambaram called for an investigation into BYJUs for failing to submit its 2020-21 (FY21) financial results, which the company had previously said it would file by July 15, saying it would still have $250 million (about Rs. 2,500 crore) capital from its most recent financing round in March.

The company, which has been under intense scrutiny in recent months for a variety of issues ranging from delayed audits and layoffs, made multiple acquisitions in FY21, and each of these acquisitions had a different accounting style and year.

So far, BYJU’s has raised more than $6 billion in funding and plans to file an IPO in the US through the Special Purpose Acquisition Company (SPAC) trajectory.

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

According to reports, BYJU’s is looking at Nasdaq-listed US edtech company 2U for nearly $1 billion at $15 a share.

The company has already “closed” payments related to the acquisition of Aakash Educational Services, a provider of offline test prep services.

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