Manipal Group Rescues Byju’s with Rs 1,400 Crore Injection
Byju's, the edtech company, may face further trouble as the Serious Frauds Investigation Office (SFIO) reportedly initiated a probe into the company's alleged governance lapses and financial reporting compliance failures. According to sources, the SFIO, a multidisciplinary body under the Ministry of Corporate Affairs, has begun investigating Byju's. However, Byju's stated that they have not received any communication from the SFIO regarding the launch of such a probe.
The news report awaits official confirmation, and independent verification has not been possible at this time. Byju's legal representative, Zulfiquar Memon of MZM Legal LLP, stated that the company is unaware of any discussions related to the probe and considers the news speculative. Memon expressed confidence in Byju's compliance and readiness to address any concerns raised by the authorities in a responsible and cooperative manner.
This report comes two weeks after three key directors representing major shareholders of Byju's resigned from the board due to differences with founder Byju Raveendran. The directors who stepped down were GV Ravishankar of Peak XV Partners (Sequoia Capital India), Russel Dreisenstock of Prosus, and Vivian Wu of Chan Zuckerberg Initiative. On the same day, Byju's auditor, Deloitte, one of the largest audit firms globally, also resigned, citing a "long delay" in the company's FY22 (2021-22) results.
In response to the crisis, Byju Raveendran, the founder, organized an extraordinary general meeting on July 4. During the meeting, he informed shareholders that a Board Advisory Committee would be established to offer advice and guidance to the CEO regarding the board's composition and the suitable governance structure for Byju's.
As of now, the situation remains speculative, and official confirmation from the SFIO or further developments from Byju's are awaited.
