BlackRock Slashes Byju’s Valuation by 95%, Sets New Mark at $1 Billion
- ByStartupStory | January 12, 2024
In a recent development, global asset manager BlackRock has once again adjusted the valuation of its holding in Indian edtech giant Byju’s, sharply reducing its implied worth from the earlier $22 billion mark set in early 2022 to a mere $1 billion. This significant downgrade was revealed in disclosures made by BlackRock, according to a report by TechCrunch on Friday.
BlackRock, which holds less than 1% of Byju’s, has refrained from commenting on the matter.
This latest valuation cut comes after a series of adjustments by BlackRock, with the tech investor Prosus NV (PRX.AS) pegging Byju’s at under $3 billion in November last year. The downward trend began in May when BlackRock initially reduced the valuation to approximately $8.4 billion, signaling a considerable shift in market sentiment towards the Indian education technology startup.
Byju’s, which has been a prominent player in the edtech sector, is currently facing a challenging period marked by setbacks. In late November, the company received a notice from the Enforcement Directorate (ED) and is anticipated to pay a fine due to alleged violations of foreign exchange laws. This development adds to the existing challenges faced by Byju’s, further impacting its standing in the market.