Prosus records $493 million loss in Byju's, takes stake write-off

Dutch technology investor Prosus Ventures is withdrawing its full $530 million investment in Byju's, after initially supporting the company six years ago when it was starting. This move has raised concerns about the future of India's ed-tech industry.

Prosus, in its annual report released on Monday, disclosed that it had taken a hit on the "fair value of its 9.6% stake in Byju's" as a result of the significant decline in value for shareholders, resulting in a loss of $493 million in the 2023-24 fiscal year.

Just two years ago, the Dutch investor's ownership of the online tutoring company was valued at around $2 billion, during Byju's peak valuation of $22 billion. The company has lost its position due to various alleged business and financial errors, such as misselling and billions of dollars in unpaid debt.

Almost precisely one year ago, Prosus reduced the estimated value of Byju to $5.1 billion, right after its delegate stepped down from the board of Think and Learn Pvt: Ltd, the parent company of the educational technology firm. The board of Byju saw resignations from Peak XV Partners and the Chan Zuckerberg Initiative representatives.

Several months later, in November, Prosus decreased the valuation of Byju's to $3 billion.