Another Markdown For BYJU’S: Prosus Slashes Valuation To $5.1 Bn

In what comes as another blow for the troubled edtech startup BYJU’S, its investor Prosus has slashed the fair value of the company, which last raised funding at a valuation of over $22 Bn, to $5.1 Bn.

Prosus has invested $536 Mn in BYJU’S since 2018 and currently holds a 9.6% stake in the edtech startup. In its annual report for FY23, Prosus pegged the fair value of its stake in the company at $493 Mn. This translates to a valuation of $5.1 Bn for BYJU’S.

This is not the first time when Prosus has cut the fair value of the embattled edtech giant. Late last year, the consumer internet group cut BYJU’S valuation to $5.98 Bn.

Besides Prosus, BlackRock has also slashed BYJU’S valuation twice in the last one year. 

The latest development comes at a time when the Byju Raveendran-led startup is embroiled in multiple crises. 

Last week, three key board members of BYJU’S – GV Ravishankar, MD of early-backer Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus and Chan Zuckerberg’s Vivian Wu – resigned.

Besides, BYJU’S statutory auditor Deloitte also resigned citing the delay in filing its financial statements for FY22. Following this, the startup appointed BDO (MSKA & Associates) as its statutory auditor for FY22. 

The edtech giant has been struggling since last year to raise capital and cap its losses amid the slowdown in business following the pandemic. 

Besides, BYJU’S recently also skipped an instalment for its $1.2 Bn term loan. Instead, it has sued one of its creditors in the US court.

As per a report, BYJU’S is now in advanced talks to raise $1 Bn from new shareholders.

Over the last few months, investors have slashed the valuations of several Indian unicorn startups. Here is a list of all the startups that have seen marking down of valuations by their respective investors this year.