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Byju’s Plummets From $22 Billion Valuation To Zero
https://www.whatjobs.com/news/indian-business-employment-news/byjus-plummets-from-22-billion-valuation-to-zero
By Nithya Bose in Business News, posted June 11, 2024
Indian Edtech giant Byju's, once valued at $22 billion, is now worth zero, according to a research note by financial firm HSBC.
HSBC has assigned a zero value to investment company Prosus' nearly 10 percent stake, worth about $500 million, in Byju's.
The HSBC note read: "We assign zero value to Byju's stake amid multiple legal cases and funding crunch."
Previously, the firm had valued the 10 percent stake with an 80 percent discount to the latest publicly disclosed valuation.
Byju's is currently grappling with severe financial and legal challenges.
It is struggling to pay employee salaries and faces mounting legal battles.
A senior Prosus executive said late last year said: "Byju's is facing multiple headwinds.
“We and other shareholders are working every day to improve the situation and are in close discussions with the company.”
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The company had been preparing to go public in early 2022 through a SPAC deal that could have valued it at up to $40 billion.
However, in January, US-based investment firm BlackRock drastically cut the value of its holding in Byju's from $22 billion to just $1 billion.
BlackRock owns less than one percent of the edtech firm.
A group of lenders recently petitioned a US court against new entities tied to Byju's US subsidiary, alleging that these entities are failing to pay their debts.
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