Byju's asked to pay Rs 9K cr for violating foreign funding laws

New Delhi: The Enforcement Directorate (ED) has issued a notice to edtech major Byju's, asking it to pay Rs 9,000 crore for allegedly violating foreign funding laws, sources said. However, the company has denied receiving any such communication from the authorities. According to sources in the ED, Byju's received foreign direct investment (FDI) of around Rs 28,000 crore between 2011 and 2023. The edtech major, the sources said, remitted around Rs 9,754 crore to foreign jurisdictions during the same period in the name of overseas direct investment.

The company has posted on its official X handle that it has not received any such communication. “Byju’s unequivocally denies media reports that insinuates Byju’s of any FEMA violation. The company has not received any such communication from authorities,” the statement said. The ED’s notice is the latest development in the unravelling of what was India’s most valued start-up at one time.

Byju’s parent company, Think and Learn Private Limited, was set up by engineers and teachers Byju Raveendran and his wife Divya Gokulnath in 2011. Initially, they offered online learning programmes for competitive exams. In 2015, the company launched the Byju’s learning app, their first step in what became a steep growth curve. Two years later, they launched a math app for children and another to help parents track their kids’ progress. By 2018, Byju’s had over 1.5 crore users as the company reaches millions of homes in small cities and rural areas. The app’s popularity got a massive boost during the Covid pandemic, when schools shut and children had to shift to a digital mode of education.