Prosus NV, a prominent technology investor listed in the Netherlands, has made a significant reduction in the valuation of Indian edtech startup Byju's, according to its annual report. Byju's, which was once India's most valuable startup, has seen its valuation plummet by over 75 per cent from USD 22 billion to USD 5.1 billion in just one year.
In its financial report for the year ending 31 March, Prosus disclosed that it had slashed the value of its 9.6 per cent stake in Byju's to approximately USD 493 million. This downward revision comes shortly after Prosus, along with other investors, resigned from Byju's board. Prosus holds the largest investment stake in the company.
Byju's has faced a series of challenges recently, leading to concerns among investors. The startup's auditor, Deloitte, resigned due to the company's failure to provide financial statements for the fiscal year 2021-22. Additionally, three investor board members also stepped down. Byju's is currently entangled in a lawsuit in the United States concerning a USD 1.2 billion loan. Furthermore, the company faced raids related to suspected violations of foreign exchange laws.
To address investor concerns, Byju's has assured stakeholders that it will submit audited earnings for 2022 by September and 2023 results by December, as reported by Reuters. Despite this, the startup's valuation has taken a hit, with BlackRock having previously lowered it to USD 8.3 billion earlier this year.
Adding to its challenges, Byju's recently faced scrutiny from India's Employee Provident Fund Organisation (EPFO) regarding payment discrepancies. According to Reuters, the EPFO noted a shortfall in payments from Byju's, prompting the startup to deposit Rs 1.23 billion (USD 15.01 million) following the organisation's request.
(Inputs from Reuters)