The Indian edtech sector was looking like the next big thing in the tech startup ecosystem with classrooms locked down during the pandemic, as Byju's led the way. But a funding freeze meant that money received by online education platforms in 2022, dropped by 43 per cent compared to the year before, and this forced them to lay off employees as well.
As edtech Unicorn Byju's faces a probe by the Enforcement Directorate into its overseas transactions, its CEO has written that the firm brought more foreign investments to India than any startup.
Trusted by top investors
In an e-mail reassuring employees about compliance at one of India's most valuable startups, Byju Raveendran mentioned that the Unicorn had pulled in Rs 28,000 crore from foreign investors.
Apart from top venture capitalist firms such as Blackrock and Sequoia, Facebook CEO Mark Zuckerberg and BOND Capital's founder Mary Meeker, have also infused their money into Byju's.
Raveendran mentioned this to highlight the fact that 70 impact investors from across the globe have conducted due diligence before backing Byju's and hence authorities will also be satisfied with its compliance.
What the ED is really interested in
As for the ED's probe, more than the funding coming into India, the agency is interested in almost Rs 10,000 crore sent outside the country as remittances.
This scrutiny marks a tumultuous year for Byju's when it has been pulled up for delaying GST filing, for layoffs and has faced questions over a 20-fold rise in losses.