Valuation Drops IDR 283 T, India’s Proud Startup Is Getting Gloomy Tech – 16 hours ago


Jakarta, CNBC Indonesia – The fate of India’s largest startup is getting bleaker. Byju’s, which previously had a valuation of US$ 22 billion (Rp. 330 trillion), has now fallen below US$ 3 billion (Rp. 46.25 trillion).

Byju’s latest valuation was revealed by one of its main shareholders, Prosus. Prosus is a South African investment company based in the Netherlands. Apart from Byju, Prosus also owns shares in Tencent and OLX.

In a conversation with investors, a senior Prosus official revealed that they have now valued Byju at under US$ 3 billion. Even so, Prosus emphasized that the potential in the South Asian market, including India, is still wide open.


Since its founding, Byju has raised US$ 5 billion in capital and debt. Byju’s valuation of IDR 330 trillion was touched in early 2022.

Prosus pocketed around 9 percent of Byju’s shares. In the past year, Prosus has repeatedly adjusted the valuation of Byju’s in its portfolio. The last adjustment was made in March, namely US$ 5.1 billion.

Officials at Prosus stated that the edutech giant, which operates in South Asia and the Middle East, is facing various challenges. Prosus and other investors are still trying to support the company to recover,

Not all of Prosus’ investments in India are under stress. Fintech company PayU is said to be planning to release shares to the stock exchange in 2024.

Left behind by investors

Some time ago, news circulated that Byju’s management often ignored investors’ suggestions to improve corporate governance. As a result, the shareholders decided to leave the company’s board of commissioners.

Prosus stated that the company’s shareholders had made efforts to help improve governance at Byju’s. “Byju’s company leaders always ignore advice and recommendations regarding strategy, operations, legal and corporate governance,” Prosus said in a company statement as reported by Reuters.

Byju Raveendran, founder and CEO of Byju's learning app.  (YouTube/World Government Summit)Byju Raveendran, founder and CEO of Byju’s learning app. (YouTube/World Government Summit)

The reason Prosus withdrew from Byju’s board of commissioners was because he “could not fulfill his fiduciary duties to the company and shareholders in the long term.”

Byju’s board of commissioners currently only consists of the founder Byju Raveendran and his family, namely Divya Gokulnath (wife) and Riju Raveendran (sister).

The members of Byju’s board of commissioners who resigned were GV Ravishankar, a partner at venture capital Peak

The decision to resign three members of Byju’s board of commissioners was motivated by the financial report audit process. Deloitte, the accounting consulting company assigned to carry out the audit, withdrew because Byju continued to delay the publication of the 2011-2022 financial reports and did not provide the requested financial documents.

[Gambas:Video CNBC]

(dem/dem)