Asset manager BlackRock has slashed the implied valuation of struggling edtech firm Byju’s to less than $1 billion, a drop of 95% from $22 billion set in early 2022.
The US-based asset manager, which owns less than 1% of Byju’s, in its disclosures valued Byju’s shares at about $209.6 apiece, down from the peak of $4,660 in 2022.
While Blackrock, like other mutual fund investors, makes multiple disclosures about its portfolio during a year, it keeps its valuation rationale under wraps. Byju’s did not immediately respond to a request seeking comments.
This is not the first instance of BlackRock or other investors marking down the troubled edtech major. However, it is the most drastic adjustment in valuation that the company has faced so far. Last April, the world’s largest asset manager had slashed the valuation of the firm by nearly 50% to $11.5 billion. Dutch investor Prosus, which owns a large 9% in Byju’s, said in November that it valued the company below $3 billion.
Byju’s has been grappling with multiple crisis, including difficulties in raising capital, meeting payroll obligations, and managing a debt exceeding a billion dollars, amongst a host of legal battles. The company disclosed last month that it missed its revenue target for FY22.