28, February, 2024
HomeBusinessByju's Valuation Plunges: BlackRock Slashes Estimates, Reflecting a Shift in EdTech Fortunes

Byju’s Valuation Plunges: BlackRock Slashes Estimates, Reflecting a Shift in EdTech Fortunes

Published on

Asset management giant BlackRock, holding a stake of less than 1% in the beleaguered edtech firm, has significantly reduced its valuation of Byju’s.

Read Also | OpenAI Aims for $100 Billion Valuation in Fresh Funding Round

Once a shining star among India’s startups with a peak valuation of $22 billion, Byju’s has experienced a staggering 95% decline, now standing at $1 billion.

According to the latest report, BlackRock, as of the end of October 2023, assessed its Byju’s shares at $209.6 each, leading to a total valuation of $1 billion. This starkly contrasts with the 2022 peak valuation of $4660 per share, totaling $22 billion. BlackRock’s ownership in the Bengaluru-based company is below 1%.

Similar to other mutual fund investors, BlackRock periodically discloses its portfolio adjustments, yet the rationale behind these valuation changes remains undisclosed. Notably, this is not the first instance of BlackRock lowering its holdings’ worth in the troubled edtech major.

Moreover, BlackRock is not alone in the downward revision of Byju’s valuation. Prosus, holding approximately 9% stake, disclosed last year that its valuation of the unicorn was ‘sub $3 billion.’

This downgrade signifies a remarkable reversal of fortune for Byju’s, which aggressively spent over $2.5 billion in 2021 and 2022, acquiring more than half a dozen global firms. Supported by investors such as Peak XV Partners, Lightspeed, UBS, and Chan Zuckerberg Initiative, Byju’s has secured over $5 billion in equity and debt over the past decade.

Read Also | OpenAI in Talks to Sell Shares at Estimated $86 Billion Valuation

The shift in valuation reflects a broader trend in the evolving landscape of the EdTech sector, as market dynamics and investor sentiments continue to shape the fortunes of prominent players like Byju’s.

Latest articles

Exclusive Discounts – Maruti Unveils Massive Savings on MY2023 Vitara, Fronx Models

Maruti Suzuki dealerships are currently rolling out irresistible discounts, exceeding Rs. 1 lakh, on...

Mahindra Set to Unveil 5-Door Thar SUV with Enhanced Features in Q2 FY2025

Mahindra, a prominent player in the Indian automotive market, is set to introduce the...

Renault Scenic E-Tech EV Earns Coveted Car of the Year 2024 Award

Renault's Scenic E-Tech electric SUV has secured the prestigious title of Car of the...

More like this

Expedia Announces 1,500 Jobs Layout Amid Shifting Travel Landscape

Expedia Group is set to trim its global workforce by 9%, amounting to approximately...

Bitcoin Surges Beyond $55,000: Cryptocurrency Market Update and Trends

Bitcoin has experienced an 8.14% surge in the last 24 hours, reaching $55,708.64, marking...

Paytm Shares Surge 5% Amid Leadership Changes: Unraveling the Rally

Paytm's stock witnessed a 5% surge today, spurred by the recent resignation of its...
Enable Notifications OK