Byju Raveendran
Dear reader,
BlackRock, a major asset manager, has further devalued its stake in Indian edtech startup Byju’s, reducing its implied valuation from US$22 billion in early 2022 to US$1 billion. This drastic adjustment follows BlackRock’s previous markdowns and reflects a broader trend of investors reevaluating Byju’s, once considered India’s most valuable startup at US$22 billion. Other investors, like Prosus, have also revised Byju’s valuation downward, with Prosus estimating it at “sub US$3 billion.”
The revaluation marks a significant reversal for Byju’s, previously hailed as the poster child of India’s startup ecosystem. The startup, known for its innovative teaching methods, had ambitious plans, including a potential IPO in early 2022 valued at up to US$40 billion. However, geopolitical events, such as Russia’s invasion of Ukraine, disrupted market conditions, prompting Byju’s to delay its IPO.
Currently, Byju’s faces a challenging landscape, struggling with capital raising, payroll, and a billion-plus debt burden. It fell short of its revenue target for the fiscal year ending March 2022, and key departures, including the CFO and board members, have added to the company’s woes. The situation underscores the volatility and uncertainties faced by once-prominent startups amid evolving market dynamics and geopolitical events.
Sainul,
Editor.
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The post Ecosystem Roundup: Byju’s valuation cut down by 95% to US$1B; SEA’s fintech funding hits a five-year low; Parag Agrawal building AI startup appeared first on e27.