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The edtech major BYJU’S has finally received an ‘unqualified’ financial report for the year ended March 31, 2021, after a delay of more than 17 months and increasing speculation around the company’s overall financial health.

Confirming yesterday’s (August 29) media reports, sources told IANS that the edtech major will hold a board meeting soon, before making the audited financial statements for FY21 public. It was said that BYJU’S will likely announce the results on September 6.

For the uninitiated, an ‘unqualified’ financial report is without any commentary from the company itself. Therefore, it only consists of an analysis of the financials of the said company impartially. For BYJU’S, an ‘unqualified’ report is most likely going to be a strategy to quash reports of poor financial performance over FY21.

Reportedly, the report has instilled a lot of confidence among the board members, who are set to meet this week, after a 17-month delay in the filing of the report.

The delay is rare for a company the size of BYJU’S (it is India’s most valuable startup and the world’s most valuable edtech startup, with a valuation of $23 Bn). As such, the Ministry of Corporate Affairs (MCA) stepped in to ask the reasons for the delay.

According to BYJU’S cofounder Byju Raveendran, the delays have been caused due to difficulties in consolidating the accounts of all the startups and companies the edtech giant acquired during FY21. It is prudent to mention that in FY21, BYJU’S made three acquisitions for around $480 Mn, including WhiteHat Jr.

However, there have also been reports that suggest that a disagreement with the auditor caused the delays. Deloitte and BYJU’S reportedly had different stances on revenue recognition techniques.

FY22 might prove to be a bigger hurdle for auditors as BYJU’S made eight acquisitions in the year ended March 31, 2022, spending an eye-watering $2.3 Bn. Some of its biggest investments included Aakash, Great Learning, Toppr and Epic. The most notable being the NASDAQ-listed US-based edtech giant 2U.

BYJU’S reportedly has already made a bid worth $15 per share, or around $1 Bn to acquire the edtech firm. With that, the Indian edtech major will look to file an IPO via the SPAC route, which will see it get listed on NASDAQ.

Recent reports suggest that to fuel its acquisition drive, BYJU’S is looking to raise more funds, after having raised in excess of $6 Bn so far. Abu Dhabi’s sovereign wealth funds are said to be in ‘active negotiations’ with BYJU’S for raising up to $500 Mn soon.