Byju’s latest valuation, as estimated by BlackRock, is around 62 per cent down from the peak of $22 billion in April 2022. Before this, BlackRock had reduced the start-up’s valuation to $11.5 billion (as of December 31,2022).
BlackRock reportedly pegged the value of its 2,279 shares in the company at $4,043,471, estimating Byju’s fair value at $8.4 billion as of March 31, 2023.
In April 2022, BlackRock was valuing its shares of Byju’s at nearly $4,660 per unit, valuing the company at about $22 billion. However, BlackRock reportedly marked down the value of its shares in Byju’s to $2,400 per share at the end of December 2022.
Lenders have reportedly accused the company’s entity, which has no employee, of hiding $500 million as part of a battle between creditors and the edtech firm. The allegation was made during a court hearing this month in Delaware, where Alpha faces a lawsuit over who should control the firm. Lenders claim that because of a default earlier this year, they have the right to put their representative, Timothy R Pohl, in charge.
BlackRock’s latest markdown in valuation also comes at a time when Byju’s is raising Rs 2,000 crore ($250 million) from Davidson Kempner Capital Management, a US-based investment firm, in a structured instruments deal, according to people familiar with the matter.
This is part of an ongoing $1-billion funding round the firm is raising in a mix of equity and structured instruments at a valuation of $22 billion. Around $700 million of $1 billion is expected to come through equity, for which Byju’s is in talks with existing and new investors. These include investors like Abu Dhabi’s sovereign wealth fund ADQ.
The firm is also planning an Rs 8,000-crore initial public offering (IPO) of its subsidiary, Aakash, according to the sources. Aakash was acquired by Byju’s for $1 billion in 2021.
Also, Byju’s is still to file its FY22 results with the Ministry of Corporate Affairs (MCA). Other edtech unicorns, such as Unacademy, upGrad, Vedantu, PhysicsWallah, and Eruditus, have already filed their FY22 financials. The company should have filed its annual results with the MCA by September last year. But, it has been delaying that for over seven months now. Before this, the company filed its FY21 results in September 2022, after a nearly 18-month delay.
Byju’s has raised $5.8 billion in total from investors like Qatar Investment Authority (QIA), Sumeru Ventures, Vitruvian Partners, BlackRock, Chan Zuckerberg Initiative, Sequoia, Silver Lake, Bond Capital, Tencent, General Atlantic, and Tiger Global. The firm has over 150 million learners.
Before that BlackRock reduced valuation of Byju’s to $11.5 bn
The Private Shares Fund cuts Eruditus’ valuation by 9% to $2.9 bn
Baron Capital Group slashes valuation of Swiggy by 34% to $7.1 bn as of December 2022
Neuberger Berman funds reduced the valuation of Pine Labs to $3.1 billion, a reduction of 38%
Janus Henderson also marked down the valuation of API Holdings, the parent of PharmEasy, by half to around $2.8 bn