Byju's valuation plummets 95% as BlackRock takes axe

In a significant development for India’s edtech giant Byju’s, BlackRock, a prominent US-based asset manager, has once again devalued its stake in the company, this time marking it down to approximately $1 billion.

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This valuation is notably 95% lower than Byju’s peak valuation of $22 billion in 2022. The disclosure from BlackRock comes amid a series of challenges faced by Byju’s, including difficulties in securing fresh capital, delays in financial reporting, and ongoing legal disputes with lenders.

As of the end of October last year, BlackRock had valued Byju’s shares at around $209.6 apiece, a substantial decrease from the peak valuation of $4,660 in 2022. This latest markdown reflects the company’s struggle to address its financial woes and navigate complex legal entanglements.

BlackRock, with a stake of under 1%, has witnessed a progressive reduction in the valuation of its investment in Byju’s. Last year, it had slashed the valuation to about $8.4 billion, marking a downturn from the $11.5 billion valuation reported as of December 31, 2022. The recent markdown to $1 billion further highlights the persistent challenges faced by the edtech giant in maintaining its earlier valuations.