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Byju's Faces Govt Inspection Into Financial Affairs Following Auditor, Board Members Resignations
Byju's (file photo)
Byju's, the education-technology giant, is facing a government-ordered inspection of its account books following the resignation of its auditor and three board members. This development has raised concerns about the company's financial state.
The Ministry of Corporate Affairs has requested a report within six weeks. The inspection is a result of an internal assessment conducted to evaluate the company's affairs. Based on the findings, the government will determine whether the matter should be escalated to the Serious Fraud Investigation Office.
This inspection adds to the challenges faced by Byju's, which was valued at $22 billion in its latest funding round. The company is currently in negotiations to restructure its $1.2 billion term loan after violating certain terms of its debt agreement.
Once a prominent player in India's startup scene, Byju's has had to make significant job cuts and is now seeking to raise over a billion dollars to overcome financial difficulties.
Deloitte Haskins & Sells, the auditor for Byju's, resigned recently due to a delay in submitting financial statements. This resignation was followed by the departure of representatives from three influential backers - Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative - from Byju's board. These events highlight a significant loss of trust within the company.
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