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Prosus , one ofByju’slargest investor , on Monday said its once-$2.1 billion worth stake in the Indian edtech inauguration is now worth nothing , but it is still hopeful that the formerly most - valuable Amerind startup can be salvaged .
The largest external investor in Byju ’s with a 9.6 % interest , Prosus say in its quarterly account that its stake in the startup is now worth zero “ due to the significant decrease in time value for equity investors . ” Prosus Group CIO , Ervin Tu , said on an earnings call that the firm is still bright about Byju ’s mindset , but improve governance at the Indian firm will be key .
The Amerindic edtech giant has had a difficult couple of year as it grappled with a series of financial and government activity blow that have tarnished its reputation and imperiled its futurity . The inauguration ’s woes were amplified last year when it neglect to touch fiscal reporting deadlines and finally reportedrevenues well below its own projections .
The financial stumbles were compounded by thesudden departures of its auditor and instrument panel members , including a Prosus executive , andscuttled a potential $ 1 billion fundraising effort . In a heroic bid for Washington , the startupraised $ 200 million this year , but at a drastically reduced rating of about $ 225 million to $ 250 million . This lifeline has also beenentangled in effectual disputeswith some of Byju ’s expectant backer , including Prosus .
The South African - Dutch investor , whose portfolio include gamey - profile fellowship like Tencent , Delivery Hero , Swiggy and Stack Overflow , has invested more than $ 570 million in Byju ’s over the geezerhood . It has never sell any shares in the Indian edtech inauguration , whose valuation rise to a peak of $ 22 billion in former 2022 . Prosus on Monday pronounce its stakes in Byju ’s now represented a fair time value loss of $ 493 million , after the adjustment , in its current fiscal year .
Prosus has also cut down the note value of its other investment : It slenderize the value of its bet in Stack Overflow , which it bought for $ 1.8 billion in 2021 , by 39 % , and has lowered the Charles Frederick Worth of its stake in Indian online pharmacy , PharmEasy , by 35 % .
The firm ’s readjustment of Byju ’s stake come after BlackRock , the world ’s largest plus coach , alsowrote off its stake in the Indian edtech startup . Prosus last year complain that Byju ’s had “ regularly disregarded advice ” from it .
