Indian Government Orders Inspection Of Byju's Account Books Amidst Financial Challenges

The Indian government has ordered a thorough inspection of the account books of Byju's, one of India's leading edtech companies, Bloomberg reported.

The Ministry of Corporate Affairs has requested a report within six weeks, as per undisclosed sources familiar with the matter. This request for inspection comes after an internal evaluation of Byju's operations. Depending on the findings from the inspection, the government will determine whether to escalate the matter to the Serious Fraud Investigation Office.

Byju's, which was valued at $22 billion in the most recent funding round, will have to deal with the inspection as it reopens talks to restructure its $1.2 billion term loan after breaking some of the terms of its debt agreement. The company, which was once a shining example of India's vibrant startup industry, has eliminated thousands of jobs and is now looking to raise more than a billion dollars to get by during tough times financially.

Due to a delay in presenting financial results, Deloitte Haskins & Sells, Byju's auditor, quit last month. Three significant investors - Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative - sent representatives to leave Byju's board in the same week, highlighting a dramatic decline in trust among employees.