By India Today Business Desk: Edtech giant Byju’s, widely regarded as India’s most valuable start-up, is grappling with significant valuation reductions following recent events that have eroded investor confidence in the company.
Dutch-listed technology investor Prosus recently slashed the valuation of the troubled edtech start-up to $5.1 billion, as per its annual report. This marks a fall of more than 75 percent from the start-up’s mammoth $22 billion valuation last year.
Prosus has also cut the value of its 9.6 percent stake in Byju’s to around $493 million in the financial year ended March, the report added. This comes days after it stepped down from Byju’s board along with other investors.
Prosus is the edtech firm’s biggest investor shareholder. Byju’s has investors such as General Atlantic and BlackRock among its backers as well. However, the US-based investment management firm BlackRock has also slashed Byju’s valuation multiple times. Earlier this year, it slashed Byju’s to $8.3 billion.
Valuation cuts amid multiple challenges
The recent departure of its auditor, Deloitte, along with the resignation of three investor board members, has further compounded its troubles.
It is also battling a US lawsuit over a $1.2 billion loan, which came weeks after raids over suspected violations of foreign exchange laws.
Byju’s recently told investors that it will file 2022 audited earnings by September and 2023 results by December, reported news agency Reuters.