17.6 C
Tuesday, October 3, 2023
HomeTechBlackrock, a minority investor in Byju's, lowers starting valuation to $8.4 billion

Blackrock, a minority investor in Byju’s, lowers starting valuation to $8.4 billion


Blackrock, a minority investor in Byju’s, has again downgraded its stake in the Bengaluru-based startup, this time to around $8.4 billion, even as the most valuable Indian startup continues to raise capital at a better price.

Blackrock cut the value of Byju’s stock by 62% in the quarter ending March this year from a year ago, it revealed in a filing.

Nevertheless, a series of qualifications deserve attention: Blackrock is not a substantial stakeholder in Byju’s and owns less than 1% of shares in the startup.

A similar move by Prosus, one of Byju’s more prominent investors, would have raised more alarm among the Indian edtech leader. In addition, it is worth noting that valuation methods may differ between different investors. Thus, other portfolio investors could potentially have very contradictory views.

In addition, Byju’s recently secured new funding of $250 million at a valuation cap of $22 billion earlier this month, indicating that the startup continues to be valued higher by other lenders.

Blackrock’s price adjustment is the latest in a series of valuation cuts for the Indian startup ecosystem. Invesco has cut Swiggy’s valuation in half, and Pine Labs and Pharmeasy have also seen their value downgraded by some investors.

The author of what'snew2day.com is dedicated to keeping you up-to-date on the latest news and information.

Latest stories