Byju’s valuation: Prosus slashes it to below $3 billion

Prosus, an investment firm, drastically devalued its stake in Byju’s to under $3 billion, representing an 86% reduction from its peak valuation of $22 billion in October the previous year.

Ervin Tu, interim CEO of Prosus, confirmed the stake's devaluation without specifying the exact figure, during the firm's earnings call. This markdown follows previous adjustments, with Prosus having invested $536 million in Byju’s since 2018, revalued at $493 million in June, indicating an 8% decline. Notably, Blackrock, an early backer of Byju’s, also marked down its investment in the company.

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This substantial devaluation by a key investor intensifies challenges for Byju’s, which has faced criticism from investors, its board, employees, and the media. Despite being a prominent player in the edtech realm, Byju’s experienced upheaval in the past year, including layoffs, high-level departures, and legal issues such as alleged violations leading to scrutiny by the Enforcement Directorate. The Board of Control for Cricket in India (BCCI) further added pressure by involving Byju’s in a jersey sponsor dispute at the National Company Law Tribunal (NCLAT).

Additionally, Byju’s faced legal action from debt investors over missed repayment deadlines. Notably, key stakeholders like Peak XV (formerly Sequoia), Prosus, and Chan Zuckerberg withdrew their representation from Byju’s board due to the firm's failure to disclose audited financial statements for FY22 and FY23.ed