From $22bn to $1bn: BlackRock devalues BYJU'S by 95%
What's the story
BlackRock, a prominent asset manager, has slashed the valuation of BYJU'S by a staggering 95%, bringing it down from $22 billion to just $1 billion, as per Tech Crunch. This dramatic turn of events is a major setback for BYJU'S, which was once hailed as the epitome of success in India's start-up scene and the country's most valuable start-up.
Details
Previous valuation adjustments and challenges
In 2023, Prosus, an investor holding 9% of BYJU'S, valued the company at "sub $3 billion." Currently, BYJU'S is facing numerous challenges, such as raising capital, fulfilling payroll commitments, and managing over a billion dollars in debt. The company revealed last month that it failed to meet its revenue target for the fiscal year ending in March 2022.
What Next?
High-profile departures and investor criticism
BYJU'S CFO Ajay Goel left the start-up after less than seven months, returning to Vedanta in late October. This came on the heels of the exits of auditor Deloitte and three key board members in June. In July, Prosus publicly criticized the Bengaluru-based start-up for its lack of progress and ignoring investor advice despite repeated attempts.