\n<\/p>\n
In a research note, HSBC estimates that the Indian edtech giant Byju\u2019s, once valued at $22 billion, is now worth nothing. The write-down in its estimation makes Byju\u2019s one of the most spectacular startup slides in recent memory. <\/p>\n
It follows a very rough year for the Bengaluru-based startup, which was India\u2019s most valuable not long ago. Byju\u2019s struggled to meet its financial reporting deadlines last year, ultimately falling short of its target by over 50%<\/a> as it faced various governance issues<\/a>.<\/p>\n Those issues \u2014 coupled with abrupt resignations from its auditor and board members<\/a> \u2014 contributed to derailing a $1 billion fundraise deliberation<\/a> by Byju\u2019s. <\/p>\n Prosus, one of Byju\u2019s largest investors, publicly slammed the startup, alleging it \u201cregularly disregarded advice\u201d from the backer. Amid the funding crunch, Byju\u2019s then raised $200 million at a post-money valuation of about $250 million<\/a> this year \u2013 a funding that is being legally disputed by some of the largest Byju\u2019s investors<\/a>, including Prosus.<\/p>\n It stands to reason then, that in the research note HSBC also estimated the value of Prosus\u2019 10% stake in the Indian startup to be zero because of the ongoing legal cases and funding crunch. (Prosus has invested more than $500 million in Byju\u2019s over the years and hasn\u2019t sold a single share.)<\/p>\n The bank also estimated that a number of other startups are not nearly as valuable as they once were. <\/p>\n It estimates that the online pharmacy Pharmeasy should be valued at $2.8 billion (down from a high of $5.6 billion in 2021<\/a>), social commerce Meesho $2.5 billion (down from $4.9 billion), Indian agritech startup DeHaat $400 million (down from $800 million), and an otherwise unicorn logistics startup ElasticRun $800 million.<\/p>\n