BlackRock marks down BYJU’S fair value by 62%: Report

BlackRock, the largest asset management company (AMC) globally, has reduced the valuation of its stake in the edtech decacorn BYJU'S by 62% as of March 31, 2023, according to filings.

The decrease in the value of BlackRock's stake in the edtech company has resulted in BYJU’S being valued at about $8.4 billion—a decline from the $22 billion valuation at which the edtech startup continues to secure additional funding.

BlackRock, which owns 2,279 shares—less than a 1% stake in the company—has valued its stake in BYJU’S a little over $4 million. Last month, BYJU’S valuation was slashed by BlackRock to $11.5 billion, nearly half of its previous value.

Inc42 was the first to report on this development. YourStory has reached out to BYJU’S for a comment, and the story will be updated with the company's response.

The development comes a few weeks after BYJU’S raised $250 million in fresh funding at a flat valuation of $22 billion through structured instruments. The Bengaluru-based company is expected to close an additional $700 million from a sovereign fund at the same valuation.

This occurrence aligns with a prevailing trend of declining valuations for Indian startups as observed among US-based AMCs.

Recently, The Private Shares Fund slashed the valuation of its stake in edtech unicorn Eruditus by 9%, effectively valuing the company at $2.9 billion, down from $3.2 billion.

Earlier this month, YourStory reported that Baron Capital Group, a prominent investor in Swiggy, slashed the valuation of its holding in the food delivery company by 10% for the second time in three months. Also, US-based fund Neuberger Berman took a haircut in the valuations of its stake in healthtech startup Pharmeasy and fintech startup Pine Labs.

It is worth noting that an AMC’s evaluations of fair values are typically influenced by its internal assessment of the broader macro and microenvironment. 

BYJU’S, which is yet to file its financials for FY22, reported a loss of Rs 4,564.38 crore in FY21—bigger than its FY20 loss, which stood at Rs 305.5 crore.