New Delhi: BlackRock has recently devalued its stake in Byju’s, reducing the implied valuation of the Indian startup to approximately $1 billion from the $22 billion reported in early 2022. The asset manager disclosed in October of the previous year that it assessed Byju’s shares at around $209.6 each, down significantly from the peak of $4,660 in 2022, indicating a valuation of $990 million. While BlackRock, holding less than 1% of Byju’s, has not provided reasons for the valuation adjustments, this markdown is the most drastic among recent adjustments by investors.
Prosus, which owns approximately 9% of Byju’s, previously stated a valuation of “sub $3 billion” late last year. Initially valued at $22 billion, Byju’s was once considered India’s most valuable startup, but this reassessment reflects a notable downturn in its fortunes. Byju’s, previously planning an IPO in early 2022 with an estimated valuation of up to $40 billion through a SPAC deal, had to defer its plans due to market uncertainties arising from the Russia-Ukraine conflict in February. The subsequent deterioration of market conditions exacerbated Byju’s challenges, leading to difficulties in raising capital, meeting payroll, and addressing its billion-dollar-plus debt.
The company fell short of its revenue target for the fiscal year ending in March 2022, as revealed in a delayed financial report. Moreover, Byju’s is grappling with internal issues, including the departure of its CFO Ajay Goel after less than seven months, the abrupt exit of auditor Deloitte, and the departure of three key board members in June. In July, Prosus criticized Byju’s for not adequately evolving and disregarding investor advice despite repeated attempts.
