BlackRock Slashes Valuation of BYJU’S Stake by 62%, Significantly Impacting Edtech Unicorn’s Value

• ByStartupStory     |    May 31, 2023

BlackRock, the leading global asset management company (AMC), has slashed the valuation of its stake in edtech unicorn BYJU’S by 62% based on filings as of March 31, 2023. This reduction in BlackRock’s stake has resulted in BYJU’S being valued at approximately $8.4 billion, marking a significant decline from its previous valuation of $22 billion, despite continued successful fundraising efforts.

BlackRock, with its ownership of 2,279 shares, equivalent to a stake of less than 1% in the company, has valued its stake in BYJU’S at slightly over $4 million. In the recent past, BlackRock reduced the valuation of BYJU’S to $11.5 billion, representing a nearly 50% decrease from its previous value.

Following BYJU’S recent fundraising round where they secured $250 million in fresh funding at a consistent valuation of $22 billion, the company has experienced a subsequent development. It is anticipated that the Bengaluru-based edtech firm will secure an additional $700 million from a sovereign fund at the same valuation. This trend aligns with the prevailing pattern of declining valuations observed among Indian startups, particularly those backed by US-based asset management companies (AMCs).

The Private Shares Fund recently reduced the valuation of its stake in edtech unicorn Eruditus by 9%, resulting in a revised valuation of $2.9 billion, down from $3.2 billion. Additionally, YourStory reported that Baron Capital Group, a prominent investor in Swiggy, has lowered the valuation of its holdings in the food delivery company by 10% for the second time in three months. 

Furthermore, US-based fund Neuberger Berman has also adjusted the valuations of its stake in healthtech startup Pharmeasy and fintech startup Pine Labs. These developments reflect the current trend of valuation adjustments observed among various startups in the industry.

It is important to mention that the evaluations of fair values by asset management companies (AMCs) are often influenced by their internal assessment of the broader macro and microenvironment. In the case of BYJU’S, the edtech company has not yet filed its financials for FY22. However, in FY21, BYJU’S reported a loss of Rs 4,564.38 crore, which was larger than its FY20 loss of Rs 305.5 crore.

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