BlackRock Slashes BYJU’S Valuation BY 62% To $8.3 Bn

SUMMARY

BlackRock, which owns less than 1% stake in the edtech unicorn, has again slashed BYJU’S valuation

Just last month, BlackRock had slashed BYJU’S valuation by 50% to $11.5 Bn

Earlier this month, BYJU’S managed to bag $250 Mn in a debt round through structured investments

There seems to be no end to the valuation markdowns for edtech giant BYJU’S, as US-based investment management firm BlackRock, which owns less than 1% stake in the unicorn, has again slashed its valuation by 61.9% in the quarter ending March this year to $8.36 Bn from $22 Bn earlier.

Last month it was reported that BlackRock slashed BYJU’S valuation by 50% to $11.5 Bn.

It must be noted that valuation methodologies vary from investor to investor and BlackRock slashing the valuation does not necessarily mean that it would be perceived negatively by other investors. However, it may have a ripple effect.

BYJU’S denied to comment on the development of the valuation cut.

Despite the valuation markdowns, BYJU’S managed to bag $250 Mn in a debt round through structured investments from US-based alternative investment firm Davidson Kempner earlier this month.

The latest development comes almost a month after BYJU’S founder Byju Raveendran, in an interview said, he was not worried about the valuation.

“I think the media is more worried about the valuation than any of us. Why should we be worried about valuation, we are not selling anything. We have been buying more and more. We have been increasing the ownership in the company. We have significantly increased the ownership in the company in the last 12 months,” Raveendran said.

The valuation cut adds to the woes of loss-making BYJU’S which is currently being investigated by the Enforcement Directorate (ED) for alleged violation of Foreign Exchange Management Act (FEMA) norms. However, as per reports, the ED has not found any FEMA violations by the edtech startup.

BYJU’S is also yet to file its financial statements for the financial year 2021-22 (FY22).

Amidst the global economic downturn, Indian unicorns, which earlier saw their valuations rise meteorically on the back of multiple funding rounds, have been witnessing a sharp decline in their valuations. Food tech giant Swiggy, B2C ecommerce startup Meesho, ride-hailing startup OLA, fintech unicorn Pine Labs, and epharmacy startup PharmEasy are among the Indian unicorns which have seen valuation cuts by their investors this year.