Business new tamfitronics
MUMBAI: For
Prosus
one of Byju’s largest investors, the
startup
now has zero value. The company has written off the fair value of its 9.6% stake in Byju’s, the Netherlands-based technology investor said in its FY24 annual report on Monday, marking a steep downturn for a startup which was once valued at $22 billion.
“We impaired Byju’s down to zero at the end of FY24.
We have written down Byju’s primarily because we have inadequate information on the company’s financial health, liabilities and future outlook,” a company spokesperson said. Prosus, which has infused over $500 million into the troubled startup, said that it has recognised a fair value loss of $493 million on its
investment
in Byju’s in FY24.
A series of financial and corporate governance lapses cost Byju’s the trust of its investors who had collectively invested over $5 billion into the company that sought to leverage technology and reduce barriers to quality education for students. Byju’s widening rift with its investors has been out in the open and has reached the courtroom with a group of investors including Prosus filing an oppression and mismanagement suit against the startup’s management.
Investors Prosus, General Atlantic, Sofina and Peak XV Partners have also been opposed to Byju’s rights issue and have managed to get a court-approved order restricting the startup from using funds raised through the rights issue. In June last year, Prosus representative Russell Dreisenstock stepped down from Byju’s board citing disregard for Dreisenstock’s advice and recommendations by Byju’s leadership. In Feb, a majority of Byju’s investors led by Prosus also voted to oust Byju Raveendran as the CEO while seeking a reconstitution of the company’s family run board.
While Byju’s bleeds, Prosus’ other portfolio company Swiggy’s revenues grew 24% while its gross order value grew by 26% y-o-y on the back of healthy order growth and higher average order value in CY2023. “Adjusted Ebitda improved to a loss of $261 million,” Prosus said.
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