Prosus, a Netherlands-based technology investor, recorded the fair value of its 9.67 percent stake in Byju's at $578 million at the end of the September quarter, when it began classifying the edtech company as a non-controlling financial investment rather than an associate as its shareholding fell below 10 per cent.
Although Prosus' accounting entry indicates that it values Byju's at $5.97 billion, experts say that different shareholders' books may value a private company differently. Furthermore, the value of shares in the same company may differ significantly between a significant shareholder and a minority shareholder.
In its most recent funding round in October, Byju's was valued at $22 billion.
In its 2022 annual report, the technology investor stated that it had invested a total of $536 million in Byju's since 2018 and held a 10 per cent stake.
Swiggy, Eruditus, Elastic Run, Meesho, Pharmeasy, and Urban Company are also among the companies in which Prosus has a stake.
Because of its significant influence on the board of directors, the group continues to account for its interest in Byju's as an investment in an associate.
Byju's underwhelming performance, particularly in FY21, has called into question the company's and other edtech firms' valuations, as investors have grown increasingly concerned about their ability to meet revenue projections.
As a result, despite the fact that the macro environment was challenging and some of its peers were having difficulty raising funds, Byju's recently had to raise $250 million at its current valuation.
In March this year Byju's announced a $800 million fundraise, with Raveendran (Co-founder) leading the round with a $400 million cheque. Two investors withdrew, and Byju's never received the estimated $250 million from the previous two rounds. According to Byju's, the two investors left due to the uncertain macroeconomic environment.
The proposed $800 million was to be raised at a valuation of $22 billion. According to an investor with direct knowledge of the matter, Byju's FY23 revenue is expected to exceed $1.9 billion (Rs 15,660 crore), allowing the company to raise the funds at a TTM (trailing twelve months) multiple of slightly more than 11.