BlackRock, with a stake of less than 1%, has significantly reduced its valuation of edtech firm Byju's, once valued at $22 billion, to $1 billion.
By the end of October 2023, BlackRock valued Byju's shares at $209.6 apiece, compared to the peak of $4660 apiece in 2022, indicating the drastic decline in valuation.
The asset manager's disclosure is part of routine portfolio disclosures, and BlackRock, like other mutual fund investors, does not provide specific reasons for valuation adjustments.
This isn't the first time BlackRock has lowered the worth of its holdings in Byju's, reflecting ongoing challenges for the embattled edtech company.
Other investors, including Prosus with a 9% stake, have also significantly reduced their valuation of Byju's, stating it's 'sub $3 billion.
Byju's, founded by Byju Raveendran and Divya Gokulnath, experienced a stunning reversal of fortune, going from a $22 billion valuation to $1 billion, despite spending over $2.5 billion on acquisitions in 2021 and 2022.
Backed by Peak XV Partners, Lightspeed, UBS, and Chan Zuckerberg Initiative, Byju's has raised over $5 billion in equity and debt over the past decade.
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