Byju's Blues: Edtech Firm's Valuation Takes A Nose Dive To Under $3 Billion From $22 Billion Last Year

With no end in sight, Edtech powerhouse Byju's is facing another substantial setback as tech investor Prosus slashed its valuation to under $3 billion, marking an 86 per cent decline from its peak valuation of $22 billion last year, as reported by NDTV.

The once-thriving startup, which witnessed a rapid expansion during the Covid-19 pandemic, now grapples with cash-flow issues and is entangled in a dispute with creditors over a $1.2 billion loan.

This latest blow comes on the heels of Byju's revealing a staggering Rs 2,250 crore loss, coupled with a delay in filing its 2021/22 financial results by almost a year.

The company's leadership experienced significant upheaval, with resignations from auditor Deloitte, three board members, and, most recently, the chief financial officer and chief technology officer.

The downturn highlights the challenges faced by Byju's, once lauded as a beacon of India's thriving startup economy.

The company's ambitious spending during the pandemic, coupled with acquisitions both in India and the US, were aimed at rapid expansion.

Despite Prosus not providing a specific reason for the recent valuation cut, concerns over Byju's management decisions were flagged in July, stating the company "regularly disregarded advice" to enhance governance.

The edtech giant's challenges extend beyond financial woes, as it faces legal action from the Board of Control for Cricket in India (BCCI) over a missed payment of sponsorship royalties amounting to around $20 million.