BENGALURU: Edtech firm Byju’s troubles continue as the Netherlands-based technology investor Prosus has marked down the firm’s valuation to USD 5.1 billion.
This comes at a time when the company is grappling with many challenges including the resignation of three prominent board members and the exit of the auditing firm Deloitte.
Prosus, which holds less than a 10 per cent stake in Byju’s, has invested USD 536 million in it since 2018. The group lost significant influence in the firm since September 2022 as it no longer exerts significant influence over the financial and operating policies of the entity.
In its annual report, Prosus said, “The group recognised a gain on the loss of significant influence of the associate of USD 22 million, including a reclassification of the accumulated foreign currency translation losses of USD 55 million.”
It added that the group accounted for its 9.60 per cent effective interest in Byju’s at fair value through other comprehensive income. The fair value of the edtech firm investment subsequent to the loss of significant influence is USD 578 million, Prosus said.
In April 2021, the group made an additional investment of about USD 153 million in Byju’s. In March 2021, the group held an 11 per cent effective interest. Following this investment, the group retained its 11 per cent effective interest in the edtech firm.
Byju’s was valued at USD 22 billion in March 2022, and this means there is a 76 per cent fall in its valuation. Recently, US-based firm BlackRock slashed the valuation of Byju’s to about USD 8.4 billion, nearly 62 per cent cut.
Meanwhile, as per reports, Byju’s is in talks to raise USD 1 billion in funding to avert shareholders’ revolt. In a shareholders meeting, Byju’s CEO Byju Raveendran told shareholders that despite challenges, most business verticals are performing well.
Prosus holds less than 10 per cent stake in Byju’s
Prosus, which holds less than 10 per cent stake in Byju’s, has invested USD 536 million in it since 2018. The group lost significant influence in the firm since September 2022 as it no longer exerts significant influence over the financial and operating policies of the entity. In its annual report, Prosus said