Indian education technology company Byju’s is currently facing challenges, including insolvency proceedings and a $1 billion claim from U.S.-based Glas Trust. The startup recently announced that its auditor, BDO Global, has resigned after the company failed to provide requested documents. BDO had been appointed as the auditor earlier this year after Byju’s’ former auditor, Deloitte, left citing issues with the company’s financial reporting.
BDO stated in a letter to the company that there were “inordinate” delays in filing financials for the year ended March 2023, and management did not provide enough support for the audit. The auditor expressed concerns about the lack of transparency in providing information for evaluation. Byju’s, on the other hand, defended its inability to provide the documents, citing the suspension of the board due to the insolvency proceedings, which led to the confusion in addressing the letter.
BDO had requested a detailed forensic review of transactions involving a Dubai-based subsidiary, which led to further complications and eventually the auditor’s resignation. In response, Byju’s called for a forensic audit of BDO’s resignation by the insolvency professional appointed by an Indian court. The company has been hit hard by regulatory issues and a dispute with U.S. banks, triggering insolvency and assets freeze.
Byju’s, backed by General Atlantic, was valued at $22 billion in 2022, but has faced a significant decline in fortunes due to the various challenges it has encountered. The company’s ongoing battles with insolvency proceedings and audit resignations have further added to its struggles. It remains to be seen how Byju’s will navigate through these challenges and emerge stronger from the setbacks it has faced.
