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- 📝 Byju worthless
📝 Byju worthless
Liam Gill
June 07, 2024
News of the Day
Indian edtech giant Byju’s, once valued at $22 billion, has seen its valuation plummet to zero, according to a recent HSBC research note. This dramatic decline marks one of the most significant startup downturns in recent memory. Byju’s faced a tumultuous year, struggling to meet financial reporting deadlines, dealing with governance issues, and experiencing abrupt resignations from its auditor and board members. These challenges led to the derailment of a $1 billion fundraising effort. Major investor Prosus criticized Byju’s for ignoring advice and is now legally disputing a recent $200 million fundraising round that valued the company at $250 million. HSBC also estimated the value of Prosus' 10% stake in Byju’s as zero. The bank's report highlights similar devaluations for other startups, including Pharmeasy, Meesho, DeHaat, and ElasticRun, attributing a 50% discount to their most recent valuations due to market corrections in the edtech and SaaS sectors.
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had a vc pull a term sheet on a portfolio company at the last minute, when they were on their last month of runway, for basically no reason 2 years ago
same company is exploding in revenue now, and just raised a $30M series b
anyway i hope he saw this
— Siqi Chen (@blader)
5:48 PM • Jun 6, 2024
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