Prosus says it values BYJU'S at under $3 billion now
$3 billion is 86% less than BYJU's valuation of $22 billion last year, as the company has struggled with governance and cash flow problems
- Nov 29, 2023,
- Updated Dec 4, 2023 2:32 PM IST
In yet another setback for edtech major BYJU'S, its investor Prosus said it values the firm at under $3 billion now.
This is 86% less than its peak valuation of $22 billion last year, as the company has struggled with governance and cash flow problems.
The disclosure, made by interim CEO Ervin Tu during Prosus earnings call, is the latest cut to Byju's valuation after several executives and board members quit and it delayed filing its FY22 financial results by a year.
Over the past year, shareholders including Prosus and Blackrock have successively cut Byju's valuation to $11 billion in March, $8 billion in May and $5 billion in June.
Prosus on Wednesday did not give a reason for the valuation cut, but in July it said the company's management "regularly disregarded advice" despite repeated efforts by the Dutch-listed tech firm's former director to improve governance.
Byju's counts General Atlantic and Silver Lake as investors.
It has delayed publishing its financial results, prompting auditor Deloitte and three board members quit in June. Its chief financial officer also quit in the past week, as has its chief technology officer.
Byju's filed the delayed but incomplete financial results earlier this month, and is looking to sell off entire business lines to raise cash.
On Tuesday, the Board of Control for Cricket in India dragged BYJU'S to Bengaluru bench of National Company Law Tribunal (NCLT) over a dispute on pending dues related to sponsorship of the Indian cricket team, said a report on Tuesday.
According to NCLT website, a hearing between BCCI and BYJU'S parent company, Think and Learn, took place on Tuesday and next hearing has been scheduled for December 22, reported CNBC TV18 quoting sources.
In 2019, BYJU’S took over the sponsorship of the Indian cricket team from smartphone brand OPPO till the end of March 2022. Subsequently, BYJU’S sought an extension of the sponsorship for an additional year till 2023-end.
However, BYJU’S exited its jersey sponsorship deal with the BCCI in December 2022 as the funding winter began to hit the Indian startup ecosystem, especially BYJU'S, which has had a tumultous time ever since.
Inordinate delay in releasing the financial statements also led to the departure of auditor Deloitte apart from three key board members.
Meanwhile, the Enforcement Directorate recently sent a showcause notice to the company for allegedly flouting anti-money laundering norms.
BYJU'S has fired over 5,000 employees ever since the funding winter led to steep decline in its valuation as well.
BYJU'S parent Think & Learn’s operating losses fell 6% to Rs 2,400 crore for its core online education business, while revenue more than doubled to Rs 3,550 crore for the year ended March 31, 2022.
With inputs from Reuters
In yet another setback for edtech major BYJU'S, its investor Prosus said it values the firm at under $3 billion now.
This is 86% less than its peak valuation of $22 billion last year, as the company has struggled with governance and cash flow problems.
The disclosure, made by interim CEO Ervin Tu during Prosus earnings call, is the latest cut to Byju's valuation after several executives and board members quit and it delayed filing its FY22 financial results by a year.
Over the past year, shareholders including Prosus and Blackrock have successively cut Byju's valuation to $11 billion in March, $8 billion in May and $5 billion in June.
Prosus on Wednesday did not give a reason for the valuation cut, but in July it said the company's management "regularly disregarded advice" despite repeated efforts by the Dutch-listed tech firm's former director to improve governance.
Byju's counts General Atlantic and Silver Lake as investors.
It has delayed publishing its financial results, prompting auditor Deloitte and three board members quit in June. Its chief financial officer also quit in the past week, as has its chief technology officer.
Byju's filed the delayed but incomplete financial results earlier this month, and is looking to sell off entire business lines to raise cash.
On Tuesday, the Board of Control for Cricket in India dragged BYJU'S to Bengaluru bench of National Company Law Tribunal (NCLT) over a dispute on pending dues related to sponsorship of the Indian cricket team, said a report on Tuesday.
According to NCLT website, a hearing between BCCI and BYJU'S parent company, Think and Learn, took place on Tuesday and next hearing has been scheduled for December 22, reported CNBC TV18 quoting sources.
In 2019, BYJU’S took over the sponsorship of the Indian cricket team from smartphone brand OPPO till the end of March 2022. Subsequently, BYJU’S sought an extension of the sponsorship for an additional year till 2023-end.
However, BYJU’S exited its jersey sponsorship deal with the BCCI in December 2022 as the funding winter began to hit the Indian startup ecosystem, especially BYJU'S, which has had a tumultous time ever since.
Inordinate delay in releasing the financial statements also led to the departure of auditor Deloitte apart from three key board members.
Meanwhile, the Enforcement Directorate recently sent a showcause notice to the company for allegedly flouting anti-money laundering norms.
BYJU'S has fired over 5,000 employees ever since the funding winter led to steep decline in its valuation as well.
BYJU'S parent Think & Learn’s operating losses fell 6% to Rs 2,400 crore for its core online education business, while revenue more than doubled to Rs 3,550 crore for the year ended March 31, 2022.
With inputs from Reuters