BlackRock reduces Byju’s fair value by 62% in second cut since October 2022
Global edtech company Byju’s, valued at $22 billion last year, has seen a 62% reduction in its fair value by asset management company BlackRock. This is the second instance since October 2022 when BlackRock has cut Byju’s fair value. However, it is important to note that AMC does not typically change fair value based on internal assessments. BlackRock holds a minimal stake of 1% in Byju’s, giving limited insight into the company’s business.
The reduction in fair value comes at a time when Byju’s is preparing to raise $1 billion in funding. Reports indicate that the company is in talks to raise funds at its previous valuation of $22 billion. Byju’s has already raised $250 million through structured instruments, and discussions about raising the remaining $700 million through equity are ongoing.
The funding will be a sign of confidence in Byju’s founder and CEO, Byju Raveendran, especially after recent searches by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA) in the company’s offices. The searches raised questions about the company’s business practices.
In summary, Byju’s has seen a reduction in fair value by 62% by BlackRock, which holds a minimal stake in the company. The reduction comes at a time when the company is preparing to raise $1 billion in funding, of which $250 million has already been raised through structured instruments. Byju’s is also in talks to raise the remaining $700 million through equity.
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