BlackRock slashes Byju's valuation to $1 billion, down from $22 billion in early 2022

BlackRock cuts Byju's valuation: BlackRock has slashed the valuation of Byju's to $1 billion, TechCrunch reported, citing disclosures made by the asset manager. With a staggering $22 billion valuation in early 2022, Bengaluru-based Byju's, which was once India's most valuable startup, has been facing a string of setbacks after its exponential rise during the COVID-19 period.

Prosus slashes Byju's valuation

Prosus NV, another major stakeholder, marked down its stake to below $3 billion in November 2023, and Peak XV Partners also expressed concerns about the lack of financial transparency. In November Byju's released its much-delayed FY22 results revealing a revenue growth of 2.3x but a persistent EBITDA loss of Rs 2,253 crore. This delay and the underwhelming performance further eroded investor confidence.

Governance issues

Exits of key investors like Prosus and Peak XV from Byju's board, along with the resignation of long-standing auditor Deloitte due to concerns over accounting practices, raised red flags about the company's governance.

Loan repayment challenges

Byju's faced difficulties managing its $1.2 billion loan with international creditors, leading to an accelerated repayment schedule due to technical defaults.

Future uncertain

Byju's struggles highlight the challenges faced by the edtech sector in India. The post-pandemic slowdown, coupled with concerns about profitability and governance, has dampened investor enthusiasm. With a significantly reduced valuation and mounting pressure from creditors, Byju's future remains uncertain.