BDO, the auditor for Indian edtech startup Byju’s, has resigned with immediate effect, marking the second auditor departure for the embattled startup in about a year and further intensifying concerns about its financial health and governance.
In a scathing resignation letter, BDO subsidiary MSKA highlighted multiple issues with Byju’s, including significant delays in financial reporting, inadequate management support, and concerns over the company’s ability to recover substantial dues from a Dubai-based entity.
The auditor’s exit comes as Byju’s, once India’s most valuable startup with a $22 billion valuation, grapples with a series of crises, including a recent Supreme Court decision to resume insolvency proceedings against the startup.
Deloitte, Byju’s previous auditor, and the startup’s key board members resigned last year, citing governance issues at the firm.
MSKA, appointed in August 2023 for a five-year term, said in its resignation letter: “There has been inadequate support from the management of the Company in providing us the books of account, information and explanations sought by us and sufficient appropriate audit evidence to enable us to complete the audit for the Financial Year 2022-23.”
In a statement, a Byju’s spokesperson said BDO’s requests to the firm required “crossing ethical and legal boundaries.”
“The real reason for BDO’s resignation is BYJU’S firm refusal to backdate its reports, while BDO went to the extent of recommending a firm that could facilitate such an illegal activity. Multiple call recordings exist, where BDO representatives explicitly suggest backdating these documents, which BYJU’S refused to do. BYJU’S strongly believes that this is the main reason for their resignation,” Byju’s spokesperson added.
Techcrunch eventJoin 10k+ tech and VC leaders for growth and connections at Disrupt 2025
Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025
Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
San Francisco | October 27-29, 2025 REGISTER NOWMSKA disclosed that it has filed Form ADT 4, suggesting potential fraud or illegal activities within the company.
The resignation letter also highlighted concerns about various ongoing litigation against Byju’s and its board, including initiation of liquidation proceedings by lenders, and allegations of oppression and mismanagement by minority shareholders.
MSKA noted instances where Byju’s failed to share critical information, such as notices for EGM and insolvency proceedings, with the auditing team.
The auditor’s departure adds to the mounting challenges facing Byju’s, which has seen its valuation plummet amid missed financial deadlines, revenue shortfalls, and conflicts with investors. Top backers, including Prosus and Peak XV, have previously alleged governance issues and sought legal action to remove founder Byju Raveendran.
The edtech firm’s troubles have escalated in recent months, with the Indian Supreme Court recently putting on hold a tribunal ruling that had halted insolvency proceedings against the company. U.S. creditors are seeking to recover $1 billion from Byju’s, adding to the pressure on the once-celebrated startup.