Prosus cuts India's Byju's valuation to under $3 billion

FILE PHOTO: Byju's logo is seen in this illustration taken, June 22, 2023. REUTERS/Dado Ruvic/Illustration

MUMBAI (Reuters) - Tech investor Prosus NV said on Wednesday it was valuing Indian education firm Byju's at under $3 billion, 86% less than its peak valuation of $22 billion last year, after the company struggled with governance and cash-flow problems.

The disclosure, made by interim CEO Ervin Tu during Prosus earnings call, is the latest cut to Byju's valuation after several executives and board members quit and it delayed filing its 2021/22 financial results by a year.

Over the past year, shareholders including Prosus and Blackrock have successively cut Byju's valuation to $11 billion in March, $8 billion in May and $5 billion in June.

Prosus on Wednesday did not give a reason for the valuation cut, but in July it said the company's management "regularly disregarded advice" despite repeated efforts by the Dutch-listed tech firm's former director to improve governance.

Byju's counts General Atlantic and Silver Lake as investors.

It has delayed publishing its financial results, prompting auditor Deloitte and three board members quit in June. Its chief financial officer also quit in the past week, as has its chief technology officer.

Byju's filed the delayed but incomplete financial results earlier this month, and is looking to sell off entire business lines to raise cash.

(Reporting by M. Sriram and Aditya Kalra; Editing by Miral Fahmy)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!


Next In Tech News

Xiaomi launches new photo-geared 14 Series smartphone
Google rows back AI-image tool after WWII gaffe
Rise of AI is 'not going to be only a good story,' OpenAI boss says
Review: 'Apollo Justice' – Be the lawyer of this courtroom drama
Review: 'Prince of Persia' – A race against time in an ancient empire
Exclusive-Broadcom nears $3.8 billion sale of remote access unit to KKR
Google says its AI image-generator would sometimes ‘overcompensate’ for diversity
Authorities troll LockBit boss on his commandeered Darkweb site
Meta’s Mark Zuckerberg seeks out of lawsuits blaming him for Instagram addiction
Canadian federal police says they were targeted by cyberattack

Others Also Read