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Once valued at $22 billion, Byju’s is now worth 'zero'

“Previously, we valued around 10 per cent stake in Byju’s by applying an 80 per cent discount to the latest publicly disclosed valuation,” the note added
11:24 AM Jun 07, 2024 IST | IANS
once valued at  22 billion  byju’s is now worth  zero
Once valued at $22 billion, Byju’s is now worth 'zero' --- Photo: @BYJUS/X
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New Delhi, June 07: In what could be a shocker to many, edtech firm Byju’s, which was once valued at $22 billion, is now worth zero, according to a research note by financial firm HSBC.

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HSBC has assigned zero value to investment company Prosus' nearly 10 per cent stake (or about $500 million) in Byju’s.

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"We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” according to the HSBC note.

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“Previously, we valued around 10 per cent stake in Byju’s by applying an 80 per cent discount to the latest publicly disclosed valuation,” the note added.

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The embattled edtech firm is struggling to pay employee salaries amid mounting legal battles.

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"Byju's is facing multiple headwinds. We and other shareholders are working everyday to improve the situation. We are in close discussions with the company every day," a senior Prosus executive was quoted as saying in reports late last year.

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In fact, Byju’s was preparing to go public in early 2022 through an SPAC deal that would have valued the company at up to $40 billion.

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In January this year, US-based investment firm BlackRock cut the value of its holding in Byju's to a mere $1 billion from $22 billion in early 2022.

BlackRock owns less than 1 per cent of Byju’s.

Earlier this week, a group of lenders petitioned against the new entities tied to Byju's US subsidiary into bankruptcy in a US court, alleging that these entities are not paying their debts.

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