BlackRock Reduces Valuation of Byju’s Edtech Company by 62%

byjus valuation drop

Byju’s faces valuation adjustment as BlackRock lowers investment value for the second time

In a significant move, BlackRock, the world’s largest asset management company, has announced a 62% reduction in the valuation of Byju’s, India’s leading edtech company. This marks the second time within a year that BlackRock has decreased its investment value in the company.

BlackRock, holding less than 1% equity in Byju’s, owns a total of 2,279 shares. The latest valuation adjustment brings Byju’s worth down to approximately $8.4 billion. The decision reflects Byju’s inability to meet its profit targets for March 2023, which led to the implementation of cost-cutting measures including a notable layoff of 2,500 employees.

Despite the reduction in valuation, Byju’s recently secured $250 million in fresh funding from other investors, allowing the company to maintain an overall valuation of around $22 billion. However, the specific valuation associated with this investment has not been disclosed by Byju’s.

Earlier this year, BlackRock had already diminished Byju’s valuation by nearly 50%, decreasing it to $11.3 billion from its peak valuation of $24 billion. The continuous fluctuations in Byju’s valuation underscore the dynamic nature of the edtech investment landscape, where financial performance plays a crucial role in determining a company’s perceived value.

Byju’s, a prominent educational technology firm headquartered in Bangalore, provides online learning programs and resources for students ranging from kindergarten to grade 12, as well as preparation for competitive exams. The company’s rapid growth has attracted significant investments from global investors, making it a key player in the edtech industry.

As Byju’s continues to navigate challenges in meeting its financial targets, the adjustment in valuation by BlackRock highlights the potential impact on the market value of companies within the edtech sector.

Stay informed with our blog for daily business news and updates. The Direct Business.

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