Investment firm Prosus NV now values Indian education company Byju’s at less than USD 3 billion, marking an 86% decline from its peak valuation of USD 22 billion last year. This significant reduction is attributed to governance and cash-flow issues, as revealed by Interim CEO Ervin Tu during the Prosus earnings call. Byju’s has faced challenges, with key executives and board members resigning, leading to a delay in filing its 2021/22 financial results by a year. Shareholders, including Prosus and BlackRock, successively lowered Byju’s valuation to USD 11 billion in March, USD 8 billion in May, and USD 5 billion in June. Notably, investors General Atlantic and Silver Lake are also involved in the company.
MUMBAI: Tech investor Prosus NV stated on Wednesday that it values Indian education firm Byju’s at less than USD 3 billion. This is a significant decrease of 86% from its peak valuation of USD 22 billion last year. The drop is attributed to governance and cash-flow issues faced by the company.
MUMBAI: Tech investor Prosus NV announced on Wednesday that it values Indian education firm Byju’s at less than USD 3 billion, marking an 86% decrease from its peak valuation of USD 22 billion last year. This adjustment comes as the company faced challenges related to governance and cash-flow issues.
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In the past year, shareholders such as Prosus and BlackRock have successively reduced Byju’s valuation to $11 billion in March, $8 billion in May, and $5 billion in June.
Prosus did not provide a reason for the valuation cut on Wednesday. However, in July, it stated that the company’s management “regularly disregarded advice,” despite repeated efforts by the Dutch-listed tech firm’s former director to improve governance.
General Atlantic and Silver Lake are among the investors in Byju’s.
The company has faced challenges, including a delay in publishing its financial results, leading to the resignation of auditor Deloitte and three board members in June. The chief financial officer and chief technology officer have also resigned in the past week.
Byju’s filed delayed and incomplete financial results earlier this month and is exploring the sale of entire business lines to generate cash.
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