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Investment firm Prosus cuts valuation of Byju's to under $3 billion

This is 86 per cent less than the valuation of the company at $22 billion last year

 Global investment group Prosus NV or Prosus, on Wednesday, said it is slashing the valuation of ed-tech company Byju's to under $3 billion.

This is 86 per cent less than the valuation of the company at $22 billion last year.

The valuation cut, made during an earnings call by Prosus interim CEO Ervin Tu without citing a reason, is the latest blow to the ed-tech company that has been plagued by high-level exits, delay in its financial results for 2021-22 by a year, layoffs, and legal battle with lenders.

“We are not disclosing the (exact) valuation, but it is sub-$3 billion,” Tu has been quoted as saying.

The Dutch-listed investor said as of September 2022, it "no longer exerts significant influence over the financial and operating policies" of the ed-tech company.

Over the past year, shareholders of Byju's, including Prosus and Blackrock, have successively cut the valuation of the company to $11 billion in March, $8 billion in May and $5 billion in June, reports Reuters.

While Porus did not offer a reason for reducing the valuation this time, in July, the company had said Byju's management "regularly disregarded advice" to improve its governance.