Prosus NV slashes valuation of edtech giant Byju’s to $5.1 billion

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Dutch-listed technology investor Prosus NV has slashed the valuation of Indian edtech startup Byju’s to $5.1 billion, according to a TechCrunch report.

Prosus had downsized the value of its 9.6% stake in Byju’s to around $493 million in the financial year ended March 31, the report added.

Byju’s making up shortfall to India state pension fund 

India’s Employees Provident Fund Organisation observed a shortfall in Indian edtech startup Byju’s from August last year to May 2023, labour ministry sources told Reuters on Tuesday. 


The company deposited Rs 123 crore ($15.01 million) after the EPFO issued a direction, the sources said.


They said the remaining balance of Rs 3.43 crore would be deposited within a couple of days.


Meanwhile, Byju’s is in advanced talks with prospective new shareholders for a $1 billion fundraising round in an attempt to sidestep a revolt by some investors, Bloomberg News reported on Tuesday, citing sources.


The education startup is offering benefits to the potential investors, including preferential treatment in the case of liquidation, the report said, adding that none of its existing shareholders have a so-called liquidation preference.


Byju’s seeks to close a round within two weeks, according to the report. The company did not immediately respond to a Reuters’ request for a comment.


The report comes days after representatives of three global investors – Peak XV, Prosus NV and the Chan-Zuckerberg Initiative – stepped down from the company without publicly citing reasons, and auditor Deloitte said it was severing ties with the startup over its “long-delayed” financial statements for the year ended March 2022.

First Published: Jun 27 2023 | 8:35 PM IST

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