In one more occasion of valuation markdown for Byju’s, US-based Baron Capital has slashed the troubled edtech startup’s valuation by virtually half, citing slowdown in its enterprise and the resignation of its auditor Deloitte and three board members. The agency’s June quarte report confirmed that it has reduce the valuation of Byju’s by 44.6%. This successfully values Byju’s underneath $12 billion. The Bengaluru-based agency was valued at $22 billion when it had raised $250 million from buyers in October 2022.
“Think & Learn, the parent entity of Byju’s detracted during the quarter. Weak performance was driven by a marked slowdown in business momentum as Covid-related tailwinds that benefited online/digital education have begun to dissipate. In addition, Byju’s announced that Deloitte had resigned as its auditor and will be replaced by BDO. Three investors appointed board directors also resigned during the quarter. These developments were deemed as material adverse events that required the fair market value of our holdings to be adjusted” Baron Capital mentioned.
“Think & Learn, the parent entity of Byju’s detracted during the quarter. Weak performance was driven by a marked slowdown in business momentum as Covid-related tailwinds that benefited online/digital education have begun to dissipate. In addition, Byju’s announced that Deloitte had resigned as its auditor and will be replaced by BDO. Three investors appointed board directors also resigned during the quarter. These developments were deemed as material adverse events that required the fair market value of our holdings to be adjusted” Baron Capital mentioned.
