Byju Raveendran, CEO of Byju’s, has shed light on the resignation of the company’s auditor, MSKA & Associates, a BDO India affiliate, calling it more of a symbolic move than a significant one. The resignation, which has garnered much attention, came after the auditor allegedly suggested backdating financial reports. Raveendran spoke openly about the issue, stating that Byju’s had refused to comply with the request, maintaining that the company had nothing to hide.
The auditor’s resignation comes amid growing scrutiny of Byju’s finances and governance. Raveendran clarified that the auditors had been aware of the financial issues long before they became public. According to him, auditors are often the first to know when insolvency proceedings might occur. However, Raveendran claims that MSKA & Associates did not inform the court-appointed insolvency resolution professional (IRP) about these proceedings, which is raising questions.
Raveendran shared that the auditors had recently suggested backdating several financial reports, which the company refused. “They have asked us to do multiple backdating of reports. All that happened recently. We did not agree. We have nothing to hide,” he said. He emphasized that Byju’s stands by its financial practices and refused to bend to external pressures, even from its auditors.
The resignation of MSKA & Associates, according to Raveendran, is a matter of optics rather than substance. While it may seem like a drastic step from the outside, he maintains that it does not reflect any internal turmoil or wrongdoing. “The auditors suggested backdating reports, and when we refused, they chose to step down. This is a move to protect themselves more than anything,” he said.
In addition to the backdating issue, Raveendran also mentioned the auditors’ request for a forensic audit of a transaction with a Middle East-based partner, which was approved in June. According to him, the auditors pushed for this audit but failed to make any progress on it. This lack of action further complicated the relationship between Byju’s and the auditing firm.
The sudden resignation of an auditing firm like MSKA & Associates has brought more attention to the ongoing challenges faced by Byju’s. Despite these challenges, Raveendran has assured that the company is continuing its operations as usual. He has been clear that Byju’s is committed to transparency and intends to address the concerns raised, especially in light of the issues with the auditors. He pointed out that the resignation of the auditor does not indicate a larger problem within the company but is more a reflection of their differing views.
Byju’s, once hailed as one of India’s top edtech success stories, has been navigating a series of financial and operational challenges over the past few months. The company’s dealings with auditors, its financial transparency, and other governance issues have been under the microscope. Raveendran’s comments signal a strong defense of the company’s practices and an unwillingness to let external parties dictate internal decisions.
For Byju’s, maintaining its reputation as a trusted educational technology platform is critical. Raveendran insists that the company’s commitment to its users remains unwavering despite these challenges. The company continues to focus on its core mission—delivering high-quality educational content to students globally.
As the situation unfolds, Byju’s will likely face additional scrutiny from both industry peers and financial regulators. Raveendran’s statements seem to be an effort to clarify the company’s stance on the auditing dispute and to prevent any misconceptions from spreading. He emphasized that Byju’s will continue to operate transparently and responsibly, regardless of external pressures.
In the coming months, it will be essential for Byju’s to resolve its ongoing financial concerns and rebuild trust with its stakeholders. Raveendran’s open discussion about the backdating request and the auditor’s resignation could be a first step toward addressing the company’s governance issues and moving forward.
Despite the mounting concerns surrounding Byju’s, CEO Byju Raveendran remains confident in the company’s ability to weather the storm. He reassured stakeholders that the firm is actively working on a plan to stabilize its financial position. Raveendran acknowledged that the recent controversies have put pressure on Byju’s reputation, but he emphasized that the core mission of the company—enhancing education through technology—remains intact. “We are committed to ensuring that our students continue to receive the best learning experience, and nothing will distract us from that goal,” he stated.
Byju’s has been under intense scrutiny not just because of its financial practices but also due to its rapid expansion strategy, which some critics argue has stretched the company’s resources too thin. Raveendran addressed these concerns by explaining that while growth has been aggressive, it was necessary to maintain a competitive edge in the global edtech space. He noted that the company has already taken steps to streamline operations and focus on its core strengths, particularly in markets where it has seen the most success.
One of the key challenges ahead for Byju’s will be restoring trust with its investors and the wider public. The auditor resignation may have sparked doubts, but Raveendran is keen to show that the company is still financially sound. He hinted at the possibility of bringing in new auditors soon, ones that align more closely with Byju’s principles of transparency and integrity. “We need partners who share our vision for the future, and we’re already in discussions with potential firms that can help us move forward,” Raveendran said.
As the company navigates these difficulties, Raveendran made it clear that there are no plans to slow down on delivering new innovations. Byju’s continues to invest heavily in research and development, with several upcoming product launches aimed at transforming digital learning experiences. “We are always looking to push the boundaries of what’s possible in education technology,” he added. “These setbacks won’t stop us from achieving our long-term goals.”
While the challenges at Byju’s may seem daunting, Raveendran remains optimistic about the future. He believes that by addressing the immediate concerns head-on and maintaining a clear focus on its core mission, the company can emerge stronger than before. The next few months will be critical in determining how the company resolves its financial and governance issues, but Raveendran’s leadership suggests that he is prepared to guide Byju’s through this turbulent period.