Byju’s Valuation Slashed to Zero by HSBC: Bank’s Analysis Signals Precipitous Decline for Edtech Unicorn

The once high-flying Indian edtech sector has taken a nosedive amid a funding winter, with major players like BYJU’s now struggling to justify sky-high valuations from just months ago. In a shocking assessment, banking titan HSBC has estimated BYJU’s present valuation at zero dollars following the sector slowdown.

BYJU’s had risen dramatically to become India’s most valuable startup with a $22 billion price tag last year, but current market conditions paint a very different picture. Multiple delays in financial reporting and a freeze in new investments have dimmed the outlook.

Without fresh capital influx, companies are finding it difficult to sustain growth using only revenue streams. Costly acquisitions from BYJU’s boom years now weigh heavily as interest costs rise globally. HSBC analysts see zero residual value in the education provider’s business at this point in time.

The assessment underscores the inflation-induced funding crunch facing all nascent tech industries. While BYJU’s remains a popular brand, maintaining top-dollar valuations in a volatile economic climate will be an uphill task. Whether it can speedily shift gears and achieve profitability will determine the company’s long-term viability.