Ervin Tu, interim CEO of technology investor Prosus, said the company has marked down Byju’s valuation further, below $3 billion. Tu, who took over the reins from Bob van Dijk in September, commented on the edtech’s valuation in an earnings call, after disclosing Prosus’s half-yearly results up to September.
“We are not disclosing the (exact) valuation, but it is sub-$3 billion,” said Tu. In March, Prosus had valued Byju’s at about $5.1 billion. It holds a stake of nearly 10% in the troubled edtech firm.
Late last year, Prosus said it had ceased equity accounting of Byju’s as it had lost “significant influence” over the firm after its holding slipped below 10%.
“We are in close discussions with the company every day. Byju’s is faced with multiple challenges,” Tu said, responding to a question on the edtech company.
Prosus listed Byju’s among India portfolio firms that were “large underperformers” impacting its internal rate of return (IRR). Others on the list include PharmEasy.
ET reported on November 29 that Byju’s top shareholders have demanded the company meet certain conditions before they consider any future capital infusion into the beleaguered edtech firm, which is battling a deepening fund crunch. The investors have asked the company to file its audited financials for the year ended March 31, 2023 at the earliest. In addition, they want founder Byju Raveendran to loosen his day-to-day control over operations, the