Byju's Minority Investor Blackrock Cuts Startup Valuation To $8.4 Billion Since October 2022, this is the second time Blackrock has reduced the fair value of the company
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Blackrock, an asset management company and a minority investor in edtech major Byju's, has once again cut the valuation of its holding in the Bengaluru-based startup to $8.4 billion, which is reportedly around 62%.
Since October 2022, this is the second time Blackrock has reduced the fair value of the company. BlackRock, which holds less than 1%, has pegged the value of its 2,279 shares in the company at $4,043,471, effectively estimating Byju's fair value at $8.4 billion as of March 31, 2023.
As per AMC's filings with the Securities and Exchange Commission (SEC), in April 2022, BlackRock reportedly reduced the valuation of Byju's by about 50% to $11.5 billion from $22 billion. The latest price adjustment move by BlackRock is in the recent series of valuation markdowns for Indian startups.
As per earlier media reports, in October last year, the edtech major took an unsecured loan of INR 300 crore from its subsidiary tuition chain Aakash Educational Services that it acquired for $950 million in 2021. According to regulatory filings, the unsecured loan was granted to the edtech giant at 7.50% interest rate. The firm had also reported a consolidated loss of INR 4,589 crore in FY21, up from over INR 260 crore in the previous fiscal.
Meanwhile, Byju's recently secured a $250 million in fresh funding at a valuation cap of $22 billion earlier this month, indicating that the startup continues to be valued higher by other investors. Reportedly, the edtech unicorn is finalising another $700 million in equity.