Byju's brought more FDI to India than any other startup: CEO

Amid searches by the Enforcement Directorate (ED), Byju's founder and chief executive officer Byju Raveendran has claimed the edtech company brought more foreign direct investment (FDI) to India than any other Indian startup.

In a letter to employees, the edtech major's founder said the startup has received ₹28,000 crore as FDI which has enabled it to create job opportunities for over 55,000 professionals. This makes Byju's India's largest employer among startups, the CEO claimed.

On Saturday, the Enforcement Directorate (ED) conducted searches at three premises run by Byju's founder and his company Think & Learn Private Limited under the provisions of the Foreign Exchange Management Act (FEMA). During the search, various incriminating documents and digital data were seized, the probe agency said.

In his email to employees, Raveendran said the information requested by and furnished to the ED officers in connection with the FDI raised, overseas investments made, and cross-border transactions relating to marketing and branding activities by Byju's has previously been submitted by the company's authorised representatives.

Byju's made a number of overseas acquisitions by investing an amount of around ₹9,000 crore over the years as part of its growth strategy, Raveendran said. "These acquisitions have been instrumental in expanding our reach and impact. In order to fund these acquisitions, we have remitted some of our funding overseas," the edtech startup's CEO wrote.

Byju's, which was once valued at $22 billion, went on an acquisition spree over the past few years. The edtech firm spent $2.5 billion on acquisitions that included Aakash Educational Services, U.S.-based Epic, kids' coding platform Tynker, professional education firm Great Learning and exam prep platform Toppr.

"Byju's has taken all efforts to fully comply with all applicable foreign exchange laws and all our cross-border transactions have been duly vetted by both its professional advisors," he said.

All such transactions are routed only through regular banking channels, the Reserve Bank of India-authorised dealer banks and the requisite documentation and statutory filings have been duly submitted, said Raveendran, adding the company is 'fully cooperating' with the authorities.

"As we are funded by 70+ impact investors who have satisfactorily done due diligence on our operations, including all FEMA compliance, we are confident that the authorities will also come to the same conclusion," he wrote.

On Saturday, Byju's had said the recent visit by officials from the Enforcement Directorate was related to a 'routine inquiry' under FEMA.

"We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics. We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner," a Byju's spokesperson told Fortune India.