BANGALORE (Reuters) – Tech investor Prosus (OTC:) NV said it has written down the fair value of its 9.6% stake in Indian edtech company Byju’s in fiscal 2024, making the Dutch firm the first to write down its investment entirely. in a problematic startup.
Prosus cites the write-down due to a “significant reduction in value to equity investors.”
Byju’s was once India’s most promising startup, valued at $22 billion in 2022. However, financial, legal and operational problems undermined almost all of his valuation.
Earlier this year, a group of company shareholders, including Prosus, called for the company’s founders to be ousted and for a change in management, citing concerns about the “future stability” of the company.
A fair value loss of $493 million was recognized in other comprehensive income during the year, Prosus added in its annual report.
Prosus cut its valuation of Byju’s in November to less than $3 billion, 86% below its peak valuation of $22 billion, after the company faced management and cash flow issues.