Byju’s valuation falls from $22 billion to less than $3 billion: report
text_fields
New Delhi: The edtech startup Byju’s valuation has fallen to just under $3 billion from $ 22 billion last year, NDTV reported.
The struggling company’s fall of 86 percent less than its peak valuation suggests a spiraling crisis.
Once hailed as India’s most successful start-up, Byju’s began seeing crisis following the Covid-era rapid expansion.
The post covid slump in online teaching has reportedly adversely affected the company.
The company is in legal dispute with creditors over a $1.2 billion loan, according to the report.
Shareholders including Prosus and Blackrock devalued the company over the past year to $11 billion in March, $8 billion in May and $ 5 billion in June.
The latest came days after Byju’s announced a ₹ 2,250 crore loss.
Auditor Deloitee and three board members quit the company after Byju’s delayed filing of financial results for 2021/22 nearly by a year.
The situation shows the company is struggling to overcome the crisis started after Covid restrictions were lifted.
During the boom during covid, Bjyu’s acquired several edtech startups in both India and the US, expanding rapidly.
When the situation normalized post covid, students returned to schools and colleges impacting online education.
Most important, Bjyu’s is facing legal action after creditor sued the company for not keeping to covenants on a 1.2 billion loan.
Byju Raveendran became the poster boy for India’s start-up hopes rising from a tutor to head one of the country’s most valuable company.