Byju's Valuation Marked Down To $5.1 Billion By Prosus

Edtech firm Byju's valuation in long-time investor Prosus' books has been marked down to $5.14 billion, less than a fourth of the $22 billion at which it raised funds less than a year ago.

The Netherlands-based Prosus, which has invested $536 million in Byju's since 2018, holds 9.6% effective stake in the company.

In its annual report for fiscal 2023 released on Tuesday, the global investment group said it puts the fair value of its investment at $493 million, giving Byju's an enterprise valuation of about $5.14 billion. That is a 76% decline as compared with its valuation last October, when Byju's raised funds at a $22 billion valuation from various investors. And it's 15% below $6 billion at which Prosus had valued the company in November.

This also means that Prosus is now valuing its stake in Byju's at lesser than what it was purchased for.

Prosus said that as of September 2022, it "no longer exerts significant influence over the financial and operating policies" of Byju's.

The investment group has continued to pare its stake in the Bengaluru-based company. Its effective interest, which includes its stake and other secondary shares it holds, stood at 9.6% in fiscal 2023. That compares with 9.81% in FY22, 10.57% in FY21, and 11.31% in fiscal 2020.

Prosus has declined to answer queries sent by BQ Prime.

Byju's is among several Indian startups—such as Ola, Meesho, and PharmEasy—that have seen their valuations plummet. Over the past year, Byju's has also seen valuation cuts by prominent investors, searches by the Enforcement Directorate, a legal battle with lenders over repayment terms, layoffs, delayed financial results, and funding stuck in limbo.

In FY21, Byju's reported a thirteenfold rise in losses at Rs 4,564.4 crore. Its revenue of Rs 2,430 crore was slightly lower as compared with the previous year.