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regular-article-logo Wednesday, 24 July 2024

Prosus writes off exposure in Byju’s

Prosus has invested $500 million in Byju’s over the years. In November last year, it had cut the edtech’ firm's valuation to under $3 billion from its high of $22 billion

Our Special Correspondent Mumbai Published 25.06.24, 08:52 AM
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Representational image File picture

Prosus, the technology investment firm, has written off its 9.6 per cent stake in Byju’s.

"In the current financial year, the group wrote off the fair value of its 9.6 per cent effective interest in Byju’s, due to the decrease in value for equity investors. A fair value loss of $493 million was recognised in other comprehensive income in the current year,'" the Dutch firm said in its annual report for 2023-24.

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Prosus has invested $500 million in Byju’s over the years. In November last year, it had cut the edtech’ firm's valuation to under $3 billion from its high of $22 billion.

In January this year, Blackrock had marked down the valuation of Byju’s to $1 billion.

On edtech, the Dutch investment firm said it will continue to play an active role in helping its portfolio businesses grow and innovate so that more people can enjoy the benefits of tech-enabled learning.

``We will also look for additional opportunities to expand and strengthen our edtech segment. In edtech, as in all our core segments, we are interested in real improvement for people’s everyday lives, long-term impact and sustainable value creation — fundamentally changing the world of learning for the better,’’ it added.

Prosus and three others — General Atlantic, Sofina and Peak XV — had approached the National Company Law Tribunal (NCLT) against Byju’s and its $200 million rights issue.

On June 12, the Bengaluru bench of the NCLT asked Byju's to submit complete details of its shareholders before and after the allotments of equities on March 2 as per the first tranche of rights issue.

The tribunal said it "hereby restrains the respondents from going ahead with the present rights issue which is in progress" till the disposal of the main petition filed by investors.

"The respondents are further directed to keep the amounts collected so far since opening of the second rights issue in relation to this offer in a separate account which should not be utilised till the disposal of the main petition," the order added.

Byju’s subsequently appealed against the order in the Karnataka High Court.

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