Home Insight News & Update Prosus Writes Off Its Stake in BYJU’S, Marking $493 Mn in Loss

Prosus Writes Off Its Stake in BYJU’S, Marking $493 Mn in Loss

Byju Raveendran, founder, Byju’s

Prosus, an investment firm, has disclosed that it has devalued its 9.6% stake in Byju’s, an edtech company.

According to the investment firm owned by Naspers, the write-off was due to the decrease in value for equity investors in Byju’s. This is a significant understatement, as the majority of Byju’s financial investors now assign a value to the edtech firm that is nearly nonexistent.

For the past few years, Byju’s has experienced a decrease in valuation from its early investors, including Prosus.

Read also – Infibeam Avenues Collaborates EDII to Promote AI

Byju’s recently raised a $200 million rights issue at a valuation of $225 million. This development occurred shortly thereafter. Compared to its apex valuation of $22 billion, this represents a 99% discount.

In the past year, Byju’s has experienced an exodus from its top-level and board positions. Ajay Goel, the company’s chief financial officer, departed in October 2023, while Arjun Mohoan, the chief executive for India, submitted his resignation in April of this year.

Raveendran is currently responsible for the day-to-day operations of Byju, which has reorganized its operations into three primary divisions: The Learning App, Online Classes and Tuition Centres, and Test-prep.

One of a succession of similar announcements regarding the once renowned edtech firm, Byju’s markdown is not optimistic. The near future is devoid of hope, unless a miraculous occurs, as the firm and its founder continue to face significant legal and regulatory challenges. Byju Raveendran would be aware of this and is likely to be praying as well.

About Prosus

Founded in 1997 by Ervin Tu, Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.

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