Prosus cuts India's Byju's valuation to under $3 billion
Reuters
Published Nov 29, 2023 03:48AM ET
Updated Nov 29, 2023 04:11AM ET
MUMBAI (Reuters) - Tech investor Prosus (OTC:PROSF) 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 (NYSE:BLK) 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.
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Written By: Reuters
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