{"id":80459,"date":"2024-06-25T01:40:40","date_gmt":"2024-06-25T01:40:40","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/25\/prosus-writes-off-byjus-bet-sees-zero-value-in-10-stake-india-business-news-times-of-india\/"},"modified":"2024-06-25T01:40:40","modified_gmt":"2024-06-25T01:40:40","slug":"prosus-writes-off-byjus-bet-sees-zero-value-in-10-stake-india-business-news-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/25\/prosus-writes-off-byjus-bet-sees-zero-value-in-10-stake-india-business-news-times-of-india\/","title":{"rendered":"Prosus writes off Byju\u2019s bet, sees zero value in 10% stake | India Business News – Times of India"},"content":{"rendered":"
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MUMBAI: For Prosus, one of Byju\u2019s largest investors, the startup now has zero value. The company has written off the fair value<\/a> of its 9.6% stake in Byju\u2019s, the Netherlands-based technology investor said in its FY24 annual report on Monday, marking a steep downturn for a startup which was once valued at $22 billion.
\u201cWe impaired Byju\u2019s down to zero at the end of FY24.We have written down Byju\u2019s primarily because we have inadequate information on the company\u2019s financial health, liabilities and future outlook,\u201d a company spokesperson said. Prosus, which has infused over $500 million into the troubled startup, said that it has recognised a fair value loss of $493 million on its investment in Byju\u2019s in FY24.<\/p>\n
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A series of financial and corporate governance lapses cost Byju\u2019s the trust of its investors who had collectively invested over $5 billion into the company that sought to leverage technology and reduce barriers to quality education for students. Byju\u2019s widening rift with its investors has been out in the open and has reached the courtroom with a group of investors including Prosus filing an oppression and mismanagement suit against the startup\u2019s management.
Investors Prosus, General Atlantic, Sofina and Peak XV Partners have also been opposed to Byju\u2019s rights issue and have managed to get a court-approved order restricting the startup from using funds raised through the rights issue. In June last year, Prosus representative Russell Dreisenstock stepped down from Byju\u2019s board citing disregard for Dreisenstock\u2019s advice and recommendations by Byju\u2019s leadership. In Feb, a majority of Byju\u2019s investors led by Prosus also voted to oust Byju Raveendran as the CEO while seeking a reconstitution of the company\u2019s family run board.
While Byju\u2019s bleeds, Prosus\u2019 other portfolio company Swiggy\u2019s revenues grew 24% while its gross order value grew by 26% y-o-y on the back of healthy order growth and higher average order value in CY2023. \u201cAdjusted Ebitda improved to a loss of $261 million,\u201d Prosus said. <\/p>\n

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