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Prosus, a big investor in Byju\u2019s, says its share in the Indian edtech startup is now worth nothing, but it is still hopeful that the once-most valuable Indian startup can be salvaged. <\/p>\n
Prosus, the largest external investor in Byju\u2019s with a 9.6% stake, wrote off the startup \u201cdue to the significant decrease in value for equity investors,\u201d it disclosed in its earnings report Monday. Prosus\u2019s Group CIO Erwin Tu said on an earnings call that the firm is still hopeful about Byju\u2019s outlook but the key to get there is improving governance at the Indian firm.<\/p>\n
The once-celebrated Indian edtech giant has fallen on hard times, grappling with a series of financial and governance setbacks that have tarnished its reputation and imperilled its future. The startup\u2019s woes amplified last year when it failed to meet financial reporting deadlines and ultimately reported revenues less than half of what it had projected.<\/p>\n
The financial stumble \u2014 compounded by the sudden departures of its auditor and board members, including a Prosus executive \u2014 scuttled a potential $1 billion fundraising effort, TechCrunch previously reported. In a desperate bid for capital, the startup raised a $200 million investment this year, but at a drastically reduced valuation of about $225-$250 million. This lifeline has since become entangled in legal disputes with some of Byju\u2019s largest backers, including Prosus.<\/p>\n
Prosus \u2014 whose high-profile bets include Tencent, Delivery Hero, Swiggy and Stack Overflow \u2014 has invested about $500 million in Byju\u2019s over the years. It never sold any share in the Indian edtech startup, whose valuation climbed to as high as $22 billion early last year. Prosus said the fair value written down for Byju\u2019s in FY24 was $498 million.<\/p>\n
Prosus also reported value drops in other investments. Stack Overflow, bought for $1.8 billion, saw a 39% markdown. The group\u2019s stake worth in Indian online pharmacy PharmEasy decreased by 35%, Prosus reported.<\/p>\n
The firm\u2019s readjustment of Byju\u2019s stake follows BlackRock, the world\u2019s largest asset manager, also recently writing off its stake in the Indian edtech startup<\/a>. Prosus last year complained that the Indian embattled startup had \u201cregularly disregarded advice\u201d from it.<\/p>\n<\/div>\n