Prosus, a major shareholder of Byju’s, has slashed the edtech company’s valuation to $5.1 billion. This is a significant decline from Byju’s previous valuation of $22 billion. The write-down is due to a number of factors, including the slowdown in the Indian edtech market and the rising costs of acquiring new users.
Prosus has also written off its investment in ZestMoney, a digital lending platform. The write-down of ZestMoney is valued at $400 million. ZestMoney was acquired by Byju’s in 2021 for $650 million.
The write-downs by Prosus are a sign of the challenges facing the Indian edtech market. The market has been growing rapidly in recent years, but it is now facing headwinds due to the economic slowdown and the rising cost of customer acquisition.
It remains to be seen how Byju’s will be able to recover from this setback. The company has been facing a number of challenges in recent months, including declining user growth and rising costs. It is possible that Byju’s will need to raise additional capital or make other changes in order to survive.
Prosus’s fair value for its stake in Byju’s has been reduced from $11.3 billion to $493 million. The write-down of ZestMoney is valued at $400 million.
