Founder Byju RavindranImage credit source: Forbes
When the word startup was not even popular in India, then there was a person who was engaged in creating something new. Byju Ravindran, coming from a tech background, wanted to change the education sector of the country, so he was engaged in creating an online learning platform. He started BYJU’s in 2011 which had become a big company by 2015, and the word startup in India started climbing in 2016. Today, when Byju’s is facing the investigation of ED, it is very important to know that this is not the first controversy related to the company.
Let us inform that the ED has raided two offices of Byju’s in Bengaluru and the house of the company’s founder and CEO Byju Ravindran on Saturday. The company is accused of violations of FEMA law. The ED says that it has seized several documents and digital data related to it during the search.
read this also: Forbes magazine once told Byju the country’s youngest billionaire
Byju’s blossomed in Kovid
The time of Kovid was excellent for many tech companies of the world. Due to the lockdown, the world shifted online and BYJU’S also took advantage of this. In 2020 the company White Hat Junior Like bought coding learning platform. After that in 2021, he bought Aakash Educational Services, which is the largest education service brand in the country to prepare for medical examinations. But by 2022, the company’s crisis started, and it did not go smoothly at all.
Where did Byju’s stress start?
The financial stress of Byju’s, which got Unicorn status in the year 2018, started when the company could not release the financial results for the financial year 2020-21 on time. The company’s audited results were released after a delay of 18 months. Then the company showed its loss of Rs 4,588 crore. Whereas in the financial year 2019-20 just before this, it was just Rs 262 crore.
See also: ED raided, Byjus said this in his clarification
The company is yet to release the result for the financial year ended on March 31, 2022, while after this the financial year 2022-23 has passed completely. From April 1, the new financial year has started in the country from April 1, 2023. In the financial year 2020-21, Byju’s also came under the purview of GST Intelligence. However, then the company settled the matter by paying the dues.
While the delay in the financial results of the company has shaken the confidence of its investors, many questions have already been raised on the financial functioning of the company. The controversies related to the company did the work of ‘leprosy on all this’.
Byju’s has been associated with controversies
Byju’s promotion at a time Shahrukh Khan Used to do But when his son Aryan Khan’s name got involved in a drug case, Byju’s broke the relationship. After this, Byjus got embroiled in other controversies. In this, whether the company has to lay off people in 2022 or expensive football players in the time of layoffs. Lionel Messi Signing up as its new brand ambassador.
Must Read: BYJU’S started by taking leave from job to teach tuition
Even more controversial was the allegation of Byju’s buying the database of children and their parents. When this matter of pressurizing parents and children to subscribe to BYJU’S caught fire, it National Commission for Protection of Child Rights (NCPCR) to summons. Later the company also gave its clarification on this, but they say that it was just a damage control.
Recent controversy related to Byju’s Sardar Patel Keeping up with When there was a ruckus on the information published in the company’s study material about Sardar Patel’s views on the Kashmir issue.
Why has ED reached Byju Ravindran’s house?
When Byju’s was on the path of progress, then its founder Byju Ravindran was also a shining star. in the year 2020 Forbes India’s Richest People Ravindran was India’s youngest billionaire in the list. His wealth was estimated at $3.05 billion. And in just 3 years, the Enforcement Directorate (ED) is camping at his house and office.
The ED has said in its statement that Byjus has violated the provisions of the Foreign Exchange Management Act (FEMA). From 2011 to 2023, the company has Rs 28,000 crore Raised foreign direct investment of Rs. while in the meantime Rs 9,754 crore Transferred in the name of Overseas Direct Investment in foreign companies.
Not only this, the most attention of ED Rs 944 crore The expenditure has drawn. The company has shown this in its accounts as expenditure on advertising and marketing. The rest of the ED’s investigation is still going on, so there is a possibility that more will come out in this matter. At the same time, the company has termed it as a ‘routine inquiry’ in its clarification.