Macquarie Capital Slashes Byju’s Valuation by Almost 98% Amidst Allegations of Inflated Fees

• ByStartupStory     |    March 4, 2024

Macquarie Capital, a division of Australia’s Macquarie Group, is set to dramatically reduce its investment in Indian edtech giant Byju’s. This move comes on the heels of serious allegations made by Swiss bank Julius Baer Group, pointing to inflated fees linked to outdated valuations.

According to sources familiar with the matter, Macquarie Capital is expected to slash nearly all of its stake in Byju’s, marking an astonishing reduction of approximately 98%. The Australian financial giant had injected several hundred million dollars into Byju’s in 2021.

The decision to cut ties with Byju’s was triggered by a communication from Julius Baer’s Chief Investment Officer, Yves Bonzon, in January. Bonzon expressed concerns over Macquarie Capital’s delay in reassessing the investment and providing necessary information. Shockingly, allegations have emerged that Macquarie Capital continued to bill clients based on a 2022 funding round valuation, valuing Byju’s at USD 22 billion. This valuation remained unchanged despite substantial markdowns by other investors, reaching up to 95%, as reported by Bloomberg.

The investments from Julius Baer’s clientele were channeled through a feeder fund into a Macquarie vehicle housing the Byju’s stake. This drastic move by Macquarie Capital raises questions about the stability and true valuation of Byju’s in the rapidly evolving landscape of the edtech industry.

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