Prosus drops valuation of its Byju’s investment to zero.
Prosus, a major investor in Byju’s, announced that its $2.1 billion stake in the Indian edtech startup is now valued at zero due to significant declines in equity value. Despite this write-off, Prosus remains optimistic about Byju’s future, stressing the importance of improved governance.
Byju’s has faced financial and governance issues, including missed reporting deadlines and lower-than-expected revenues. These challenges were exacerbated by the departure of its auditor and board members, which disrupted a $1 billion fundraising effort. Recently, Byju’s raised $200 million at a significantly reduced valuation of $225-$250 million, amidst ongoing legal disputes with major investors, including Prosus.
Prosus has invested over $570 million in Byju’s but has not sold any shares. The firm’s stake, previously part of a $22 billion valuation in early 2022, now shows a fair value loss of $498 million for the current financial year.
