Highlights

  • Byju's valuation slashed 95% by BlackRock amid financial turmoil.
  • Global edtech giant faces challenges, struggles to recover market standing.

Latest news

Explained in 45 seconds: why are MP locals giving Rahul Gandhi potatoes

Explained in 45 seconds: why are MP locals giving Rahul Gandhi potatoes

Haryana notifies promotion of new logo and tagline for Lok Sabha elections 2024

Haryana notifies promotion of new logo and tagline for Lok Sabha elections 2024

Haryana power minister: 10.72% line loss reduction, ₹1,000 cr profit expected by March end

Haryana power minister: 10.72% line loss reduction, ₹1,000 cr profit expected by March end

Punjab budget: Rs 30 crore allocated for 24 bridges in Sri Anandpur Sahib villages

Punjab budget: Rs 30 crore allocated for 24 bridges in Sri Anandpur Sahib villages

Punjab budget: govt's special focus on health, education; no new taxes imposed

Punjab budget: govt's special focus on health, education; no new taxes imposed

Ravichandran Ashwin picks the series that proved to be the turning point of his career | India vs England

Ravichandran Ashwin picks the series that proved to be the turning point of his career | India vs England

Haryana greenlights 15.3km service roads along Dwarka expressway

Haryana greenlights 15.3km service roads along Dwarka expressway

Nothing Phone 2a launched with Glyph LED lights, Dimensity 7200 Pro chipset: Check price in India

Nothing Phone 2a launched with Glyph LED lights, Dimensity 7200 Pro chipset: Check price in India

BlackRock slashes Byju's valuation by 95% amidst financial crisis

The startup had been preparing for an IPO via a SPAC deal in early 2022, anticipating a valuation of $40 billion. Yet, geopolitical events led to unfavourable market conditions, compelling Byju's to suspend its IPO intentions.

BlackRock slashes Byju's valuation by 95% amidst financial crisis

In a significant blow to Byju's, global asset manager BlackRock has slashed the valuation of its holding in the startup by a staggering 95%, reducing it from $22 billion to a mere $1 billion. The valuation adjustment, disclosed by BlackRock, marks a drastic turn of events for Byju's, once hailed as India's most valuable startup with a peak valuation of $50 billion.

BlackRock, which owns less than 1% of Byju's, had earlier valued the company's shares at approximately $209.6 each in October of the previous year, down sharply from the peak of $4,660 in 2022. While the asset manager did not provide a detailed rationale for the valuation adjustment, it is notable as the most severe among several downgrades by investors. Prosus, owning about 9% of Byju's, had previously valued the startup at "sub $3 billion" late last year.

Byju's, known for its innovative educational approach using real-life objects to explain complex concepts, faced challenges as it expanded globally through acquisitions, spending over $2.5 billion in 2021 and 2022. The startup was gearing up for an IPO through a SPAC deal in early 2022, with a projected valuation of up to $40 billion. However, market conditions turned adverse due to geopolitical events, forcing Byju's to halt its IPO plans.

Currently, Byju's grapples with a series of setbacks, including difficulty in raising capital, meeting payroll obligations, and managing a billion-plus debt. The company missed its revenue target for the financial year ending in March 2022, according to a delayed account released last month. The departure of key executives, including CFO Ajay Goel, and public criticism from major investor Prosus further add to the challenges faced by the Bengaluru-based startup. Investors are closely watching how Byju's navigates these obstacles and whether it can regain its once-illustrious position in the edtech landscape.


Up Next

BlackRock slashes Byju's valuation by 95% amidst financial crisis

BlackRock slashes Byju's valuation by 95% amidst financial crisis

RBI bars JM financial from providing any financing against shares, debentures; cites serious deficiencies

RBI bars JM financial from providing any financing against shares, debentures; cites serious deficiencies

Paytm's Vijay Shekhar Sharma's first public comments after RBI action; says firm will lead in Asia

Paytm's Vijay Shekhar Sharma's first public comments after RBI action; says firm will lead in Asia

Chinese firm BYD plans to capture 90% of EV market in India this year

Chinese firm BYD plans to capture 90% of EV market in India this year

Former twitter CEO Parag Aagarwal and other senior execs sue Elon Musk for unpaid severance

Former twitter CEO Parag Aagarwal and other senior execs sue Elon Musk for unpaid severance

IBM layoffs: Amid more job cuts, employees asked to volunteer if they want to leave the company

IBM layoffs: Amid more job cuts, employees asked to volunteer if they want to leave the company

More videos

China maintains 5% growth target amid economic challenges, hikes military budget by 7.2%

China maintains 5% growth target amid economic challenges, hikes military budget by 7.2%

Union Minister of Electronics and IT Ashwini Vaishnaw meets with Google and Startup community

Union Minister of Electronics and IT Ashwini Vaishnaw meets with Google and Startup community

Tesla shares tumble over 7% after sales fall in China

Tesla shares tumble over 7% after sales fall in China

Reliance-Disney merged entity to capture more than 50% of market share: Report

Reliance-Disney merged entity to capture more than 50% of market share: Report

Income Tax department asks taxpayers to submit revised ITRs for AY 2021-22 by March 31

Income Tax department asks taxpayers to submit revised ITRs for AY 2021-22 by March 31

RBI crackdown: IIFL's Nirmal Jain calls action harsh, says no governance concerns

RBI crackdown: IIFL's Nirmal Jain calls action harsh, says no governance concerns

Indian investment in UAE, European real estate spikes amidst attractive rental yields

Indian investment in UAE, European real estate spikes amidst attractive rental yields

Government unveils 'Chakshu' and 'DIP' portal to combat online fraud menace

Government unveils 'Chakshu' and 'DIP' portal to combat online fraud menace

EU commission slaps Apple with $2 billion fine over App store rules

EU commission slaps Apple with $2 billion fine over App store rules

Zerodha fund house surpasses ₹500 crore AUM, attracts 1 lakh investors in 3 months

Zerodha fund house surpasses ₹500 crore AUM, attracts 1 lakh investors in 3 months

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.