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    BusinessProsus Drops Bombshell, Writes Off Entire $500 Mn BYJU'S Investment

    Prosus Drops Bombshell, Writes Off Entire $500 Mn BYJU’S Investment


    Netherlands-based Prosus, a major investor in Indian edtech startup BYJU'S, has written off its entire stake worth around $500 million in the company. According to documents, Prosus held nearly a 10% share in BYJU'S but impaired the investment down to zero at the end of the last fiscal year.

    A Prosus spokesperson revealed they were forced to write down BYJU'S entirely as the available information about the startup's finances, obligations, and future outlook was inadequate. Prosus had invested approximately $536 million in BYJU'S since 2018. However, with the company's valuation crashing from its peak of $22 billion, Prosus' 9.6% stake is now deemed worthless.

    This move comes on the heels of financial services firm HSBC casting serious doubts over BYJU'S viability and assigning no value to Prosus' share. In their analysis, HSBC cited mounting legal troubles and a funding crunch afflicting the edtech unicorn.

    Just weeks prior, BYJU'S conducted a steeply discounted $200 million rights issue at a valuation of only $225 million – representing a staggering 99% decline from its highest valuation. Moreover, a U.S investment company slashed the appraised price of its BYJU'S holding by over 99% in the last quarter.

    With crises multiplying on several fronts such as looming debt, likely layoffs, salary delays, cash problems and lawsuits, BYJU'S has petitioned the Karnataka High Court challenging restrictions on another fundraising round. After Prosus' impairment, the future looks increasingly grim for what was once 's most valuable startup.

    The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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