Edtech firm Byju’s, a long-time investment of Prosus, has seen a significant decline in its valuation. According to Prosus’ annual report for fiscal 2023, the valuation of Byju’s stands at around $6.02 billion, a drop of more than 70% compared to its valuation of $22 billion less than a year ago. Prosus, based in the Netherlands, has invested $536 million in Byju’s since 2018 and currently holds a 9.6% effective stake in the company.
The report indicates that Prosus values its investment in Byju’s at $578 million, resulting in the lowered enterprise valuation. Prosus also stated that it no longer exerts significant influence over the financial and operating policies of Byju’s as of September 2022. The investment group has gradually reduced its stake in the Bengaluru-based company over the years.
Byju’s, along with several other Indian startups, has experienced a decline in valuation recently. The company has faced various challenges, including valuation cuts by investors, regulatory investigations, legal battles, layoffs, and delayed financial results. In FY21, Byju’s reported a substantial increase in losses and slightly lower revenue compared to the previous year.