Karti Chidambaram seeks ‘thorough investigation’ into Byju’s finances, writes to SFIO
In his letter to SFIO, Chidambaram said that as of July, 2022, Byju’s was valued at $22.6 billion, nearly $6 billion more than its valuation in October 2021.
- Jul 21, 2022,
- Updated Jul 21, 2022 7:30 PM IST
Congress MP Karti Chidambaram on Thursday wrote to the Serious Fraud Investigation Office (SFIO) seeking a “thorough investigation” into the finances of edtech giant Byju’s.
“I have written to the #SFIO to look into the financing of @BYJUS it’s imperative that a thorough investigation is launched,” tweeted Chidambaram, tagging Ministry of Corporate Affairs, and venture capital firm Sequoia.
In his letter to SFIO, Chidambaram said that as of July, 2022, Byju’s was valued at $22.6 billion, nearly $6 billion more than its valuation in October 2021.
Chidambaram added that a number of ‘grave allegations’ have been highlighted by news reports regarding the company’s finances. He listed three issues that needs SFIO’s “urgent attention”.
He said that Byju’s raised $800 million or Rs 6,401 crore from Sumeru Ventures, Vitruvian Partners, and Blackrock. Byju’s founder Byju Raveendran also made a personal investment of $400 million or Rs 3,200 crore in the fundraise. He quoted a report that said that Byju’s filing with the MCA showed that 16,031 shares were allotted to Vitruvian for Rs 571 crore but there has been no filing from Sumeru or Blackrock. Chidambaram said that Rs 2,500 crore are missing from the company’s funding.
In October 2021, Oxshott Capital Partners is said to have invested Rs 1,200 crore in the company, which he said that Byju’s confirmed that it has not received the amount.
Moreover, Byju’s has not yet received its financial statements for FY21 from its auditor Deloitte and will take more time to file the Cost Audit Report to the ministry, the minister pointed out.
Chidambaram added that when Byju’s is proposing to expand as well as acquire Nasdaq-listed company 2U for $2.4 billion, while firing employees to cut costs, “it becomes pertinent to review the company’s businesses”.
He urged SFIO to look into the matter.
Business Today did reach out to Byju’s for a comment on the development but we did not elicit any response from the firm at the time of publishing the story.
Congress MP Karti Chidambaram on Thursday wrote to the Serious Fraud Investigation Office (SFIO) seeking a “thorough investigation” into the finances of edtech giant Byju’s.
“I have written to the #SFIO to look into the financing of @BYJUS it’s imperative that a thorough investigation is launched,” tweeted Chidambaram, tagging Ministry of Corporate Affairs, and venture capital firm Sequoia.
In his letter to SFIO, Chidambaram said that as of July, 2022, Byju’s was valued at $22.6 billion, nearly $6 billion more than its valuation in October 2021.
Chidambaram added that a number of ‘grave allegations’ have been highlighted by news reports regarding the company’s finances. He listed three issues that needs SFIO’s “urgent attention”.
He said that Byju’s raised $800 million or Rs 6,401 crore from Sumeru Ventures, Vitruvian Partners, and Blackrock. Byju’s founder Byju Raveendran also made a personal investment of $400 million or Rs 3,200 crore in the fundraise. He quoted a report that said that Byju’s filing with the MCA showed that 16,031 shares were allotted to Vitruvian for Rs 571 crore but there has been no filing from Sumeru or Blackrock. Chidambaram said that Rs 2,500 crore are missing from the company’s funding.
In October 2021, Oxshott Capital Partners is said to have invested Rs 1,200 crore in the company, which he said that Byju’s confirmed that it has not received the amount.
Moreover, Byju’s has not yet received its financial statements for FY21 from its auditor Deloitte and will take more time to file the Cost Audit Report to the ministry, the minister pointed out.
Chidambaram added that when Byju’s is proposing to expand as well as acquire Nasdaq-listed company 2U for $2.4 billion, while firing employees to cut costs, “it becomes pertinent to review the company’s businesses”.
He urged SFIO to look into the matter.
Business Today did reach out to Byju’s for a comment on the development but we did not elicit any response from the firm at the time of publishing the story.