The latest announcement was made during a pro earnings call by interim CEO Erwin Tu. (File Photo)
New Delhi:
In another blow to Baijun, tech investor Prosus valued the edtech startup at less than $3 billion, down 86 percent from last year’s peak valuation of $22 billion. After rapid expansion during the Covid pandemic, Baiju is struggling with cash flow problems and is embroiled in a $1.2 billion debt dispute with creditors.
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Over the past year, shareholders, including Process and BlackRock, have successively reduced Baiju’s value by $11 billion in March, $8 billion in May and $5 billion in June.
The latest announcement was made during a pro earnings call by interim CEO Erwin Tu. This comes just days after the startup announced a loss of ₹2,250 crore. Baiju delayed filing its 2021/22 financial results by almost a year, prompting the resignation of auditor Deloitte and three board members. Its chief financial officer and chief technology officer also resigned last week.
The results show how Byju – once the poster child of India’s emerging startup economy – is struggling to survive in the post-Covid scenario. Lenders sued Baiju this year after it defaulted on a $1.2 billion loan. The standoff highlighted founder Baiju Ravindran, whose meteoric rise from tutor to head of the country’s most valuable tech startup attracted investors.
The company spent heavily after schools and universities were closed during the Covid-19 pandemic. It acquired several edtech startups not only in India but also in the US as it tried to expand rapidly.
But growth has slowed since normal classes resumed, and the company’s challenges, stemming from a months-long legal dispute, show signs of intensifying.
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