All of us know that India’s largest EDtech company, BYJU’S is going through a rough patch nowadays. Recently, Enforcement Directorate (ED) conducted searches and seizures at three of its offices in Bengaluru. It also includes the properties of BYJU’S CEO and Founder, Byju Raveendran.
The agency took this step after a complaint was registered against Byju Raveendran and his company ‘Think & Learn Private Limited.’ As per the reports, the company breached Foreign Exchange Management Act (FEMA).
Hours after ED carried out this operation, Byju Raveendran pens down a mail to all employees that assure the company is making all efforts to deal with foreign exchange laws. He also made clear that all of the company’s foreign transactions are routed through regular banking channels.
However, according to the reports of ED, BYJU’S spent around Rs 9,000 crore on overseas assets. It also mentions that the company has brought in Rs 28,000 crores into India. It is higher than any local startup. Scroll down to read the full report here:
What Is FDI?
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First of all! You need to know what is FDI. FDI stands for Foreign Direct Investment, which refers to an investment made by an organization or individual from a country to a business located in another country.
FDI typically involves a company that acquires assets or establishes operations in another country, like setting up a subsidiary or acquiring a stake in an existing company. The core purpose of FDI is to gain access to new markets, resources, and technologies, or take advantage of lower labor costs of the foreign country.
Byju Raveendran Shared All ED Operation Details With His Employees, Wrote A Long Email
After the ED investigation, Byju Raveendran wrote a long email to all of its employees, in which he disclosed all the information about the operation. In the mail, he wrote, “I wanted to take a moment to address the recent news of the Enforcement Directorate’s (ED) searches at our premises in Bangalore. The recent visit by the ED is an inquiry under FEMA.”
“The information requested by and furnished to the officers in connection with the FDI raised, overseas investments made, and cross-border transactions relating to marketing and branding activities by BYJU’S has previously been submitted by our authorized representatives.”
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Raveendran further added, “As you are aware, 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. These acquisitions have been instrumental in expanding our reach and impact.”
“In order to fund these acquisitions, we have remitted some of our funding overseas. 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.”
“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.”
“Additionally, all such transactions are routed only through regular banking channels/the RBI’s authorized 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.”
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