Prosus writes off $22 billion Indian edtech giant Byju’s | TechCrunch

Prosus, a major investor in Byju’s, says its stake in the Indian edtech startup is now worth nothing but it is still hopeful that the once most valuable Indian startup can be saved.

Prosus, the largest outside investor in Byju’s with a 9.6% stake, disclosed in its earnings report on Monday that the startup was shut down “due to a significant reduction in value to equity investors.” Irvin To, group CIO of Prosus, said on an earnings call that the firm is still optimistic about Byju’s outlook, but the key to getting there is to improve governance at the Indian firm.

The once-fame Indian edtech giant has fallen on hard times, grappling with a series of financial and governance setbacks that have tarnished its reputation and threatened its future. The startup’s troubles worsened last year when it failed to meet financial reporting deadlines and ultimately reported revenues less than half of its estimates.

TechCrunch previously reported that the financial crisis — compounded by the sudden departure of its auditor and board members, including a Prosus executive — scuttled a potential $1 billion fundraising effort. In a desperate bid for capital, the startup raised $200 million this year, but at a very low valuation of around $225-$250 million. This lifeline has since been embroiled in legal disputes with some of Byju’s biggest backers, including Prosus.

Prosus – whose high-profile bets include Tencent, Delivery Hero, Swiggy and Stack Overflow – has invested about $500 million in Byju’s over the years. It never sold any shares in the Indian edtech startup, whose valuation hit $22 billion early last year. Prosus said the fair value for Byju’s was written down by $498 million in FY24.

Prosus also reported a drop in value in other investments. Stack Overflow, which was bought for $1.8 billion, saw a 39% drop. Prosus reported that the value of the group’s stake in Indian online pharmacy PharmEasy fell by 35%.

The firm’s readjustment of stake in Byju’s comes after BlackRock, the world’s largest asset manager. Recently sold stake in Indian edtech startupProsus complained last year that troubled Indian startups had “routinely disregarded” its advice.