Byju’s: The Edtech Empire Built on Lies and Deceit
In a stunning turn of events, BDO, the auditor of Indian edtech giant Byju’s, has abandoned ship with immediate effect, citing a litany of shocking issues, including "significant delays in financial reporting" and "inadequate management support". This is the second auditor to flee the sinking ship in just over a year, leaving investors and stakeholders to wonder what’s really going on behind the scenes.
But it gets worse. In a scathing resignation letter, BDO’s subsidiary MSKA accused Byju’s of "serious governance failures" and "potential fraud" – allegations that the embattled startup is desperately trying to brush off. The auditor’s exit comes as Byju’s faces a slew of crises, including a recent Supreme Court decision to resume insolvency proceedings against the company, which could spell the end of its once-mighty reign.
But don’t just take MSKA’s word for it. Byju’s own board members have been accused of governance issues, and the startup’s key backers have been trying to remove founder Byju Raveendran from the helm. And what about the mysterious Dubai-based entity that owes Byju’s a "substantial" amount of money? Is this just a coincidence, or is there more to the story?
And then there’s the allegations of backdating financial reports, which Byju’s is trying to downplay as "crossing ethical and legal boundaries". But what’s really going on here? Are Byju’s executives trying to cook the books to avoid a financial reckoning?
As the edtech firm’s valuation plummets, its investors are left holding the bag. Top backers, including Prosus and Peak XV, have previously alleged governance issues and sought legal action to remove founder Byju Raveendran. The writing is on the wall: Byju’s is a sinking ship, and it’s only a matter of time before it goes under.
So, what’s the real reason for BDO’s resignation? Is it just a coincidence, or is there something more sinister at play? One thing is certain: Byju’s is a company in crisis, and its investors are paying the price.
