BlackRock has slashed the value of stake in Byju’s, once worth $22 billion, to zero
BlackRock reduces Byju's valuation to zero amid governance issues and missed financial projections.
BlackRock has reduced its valuation of its stake in Byju’s, once worth $22 billion, to zero, according to an SEC filing. The drastic write-down highlights the significant challenges the Indian edtech giant has faced over the past year, including missing financial reporting deadlines and falling short of revenue projections by over 50%.
Byju’s turmoil was exacerbated by governance issues, including the abrupt resignations of its auditor and board members. These issues hindered the startup from securing a $1 billion fundraising, and led major investor Prosus to publicly criticize Byju’s for disregarding its advice.
Amidst a funding crisis, Byju’s secured $200 million at a drastically reduced post-money valuation of about $250 million, which is now being legally contested by some top investors. A research note by HSBC further highlighted the severe devaluation of Prosus’ 10% stake in Byju’s, although it did not attribute a zero value to the entire company.