BENGALURU: Edtech firm Byju’s on Wednesday said the notice served on it by the Enforcement Directorate (ED) was purely on technical grounds, and that it didn’t indulge in any wrongdoing in relation to receipt of FDI or allotment of shares.
The company further says that it anticipates a nominal fine for delay in filing of certain documents.
In a statement issued on Wednesday, a Byju’s spokesperson on said the queries received in the (ED) notice are solely technical in nature such as delay in filing annual performance reports (APRs) with respect to duly compliant ODI investments of close to Rs 8,000 crore that arose from the delayed statutory audit (FY22).
The spokesperson reiterated that the firm has filed requisite intimation contemporaneously for all FDIs, which are received in accordance with the eligibility criteria in law. The company clarified that it has issued/allotted shares within the prescribed time against the FDI so received.
The company on November 21 was served a show-cause notice by the ED under FEMA (Foreign Exchange Management Act) violations in relation to FDI worth Rs 9,362.35 crore. The company says it anticipates the fines, if any, will be nominal. As per the company spokesperson, the late submission fee for such reporting delays that can be imposed with respect to APRs is very nominal (Rs 7,500).
“We want to reassure you that BYJU’S maintains and will continue to maintain complete adherence to all relevant FEMA regulations, as verified by comprehensive due diligence conducted by reputable law firms,” said the company spokesperson.
Meanwhile, the Netherlands-based investment firm Prosus has marked down Byju’s valuation to less than $3 billion. The edtech firm was once valued at $22 billion, and this means about 86% decline from its valuation.
In its recent earnings call, Ervin Tu, interim CEO of Prosus said, “We are not disclosing the valuation, but it is sub-$3 billion.” The investment firm owns a 9.6% stake in the firm. Byju’s has been facing many challenges of late, and earlier in June, Prosus had marked down its valuation to $5.1 billion.