Byju Raveendran, the founder of the ed-tech firm Byju's, is facing another devaluation of the company by asset manager BlackRock.
According to a Tech Crunch report citing company disclosures, BlackRock has once again reduced its valuation of the Indian ed-tech unicorn. This time, the valuation has been reduced approximately 95 per cent, decreasing from US dollar 22 billion to US dollar 1 billion.
Byju's Valuation Drops
Shareholders such as Prosus and Blackrock have sequentially reduced Byju's valuation over the past year to US dollar 11 billion in March, US dollar 8 billion in May, US dollar 5 billion in June and the recent US dollar 3 billion in November 29.
In the aftermath of the Covid-19 pandemic, Byju's, a prominent player in India's startup landscape, faces mounting challenges. The company, once celebrated for its growth, finds itself in a complex situation after failing to repay a substantial US dollar 1.2 billion loan, leading to legal disputes with creditors.
By October 2022, Byju's had a valuation exceeding US dollar 22 billion after securing US dollar 250 million in a funding round.
Byju's Faces Enforcement Directorate Notice Amidst Setbacks in Late November
NCLT Issues Notice To Ed-Tech Firm Over BCCI's Plea Claiming ₹158 Crore Default
The BCCI filed a petition claiming dues of Rs 158 crore as an operational creditor under section 9 of the Insolvency & Bankruptcy Code 2016.
Admitting the BCCI's petition, a two-member bench based in Bengaluru at the National Company Law Tribunal (NCLT) issued a notice to Think & Learn on November 28, 2023.
Byju's Receives ED Show Cause Notices Over Rs 9362.35 Crore FEMA Violations
The Adjudicating Authority under FEMA, 1999 has issued Show Cause Notices to M/s Think & Learn Private Limited and Byju Raveendran on November 21 following a complaint filed by the Directorate of Enforcement (ED). The notices pertain to alleged contraventions of FEMA, 1999 amounting to Rs. 9362.35 Crore. The ED initiated an investigation based on complaints related to foreign investment received by M/s Think and Learn Private Limited and the company's business operations.
