US-based asset manager BlackRock has reportedly reduced the valuation of the edtech giant Byju’s by about 50 per cent to $11.5 billion, compared with the $22 billion the company was last valued in 2022, according to tech-focused media platform The Arc. BlackRock has been marking down the valuation of Byju’s since June last year.
BlackRock joined Byju’s cap table at a $12-billion valuation in 2020 and its stake is under 1 per cent. In April 2022, BlackRock was valuing the shares of Byju’s at about $4,660 per unit. This translated into a company valuation of about $22 billion. However, BlackRock marked down the value of its shares in Byju’s to $2,400 per share at the end of December 2022.
Byju’s had posted a loss of Rs 4,588 crore for the financial year ended March 31, 2021, which was 19 times more than the preceding fiscal. Its losses in 2020-21 widened from Rs 231.69 crore in 2019-20. Byju’s revenues during 2020-21 fell to Rs 2,428 crore from Rs 2,511 crore in FY20, according to the company’s audited financial statements.
Its revenue, however, soared four-fold to Rs 10,000 crore in the financial year ended March 31, 2022, but it did not reveal profit or loss numbers for that year. The company said its losses widened in FY21 mainly on account of deferment of some revenue and losses incurred from WhiteHat Jr.
The acquisition of Aakash and Great Learning has paid off well and their business growth has been over two-fold from the pre-acquisition number, while WhiteHat Jr has been underperforming.
The company has also been making efforts to go global. In early 2019, Byju’s acquired Osmo, a Palo Alto-based maker of educational games to transform the whole offline to online learning experience. Since then, it has expanded with strong partners like EPiC, Tynker, White Hat Jr, Aakash, Great Learning and Gradeup, among others, strengthening its portfolio of offerings and its reach globally.
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