BlackRock Writes Off Entire Byju’s Investment: Education Technology Company Plummets in Value from $22 Billion to $0

In a surprising move, BlackRock, one of the largest asset management firms globally, has written down the entire valuation of its stake in India’s leading edtech startup Byju’s. According to sources familiar with the development, BlackRock had invested around $200 million for a stake in Byju’s last year, which valued the company at a massive $22 billion. However, in recent re-evaluation, BlackRock has slashed the valuation of its Byju’s holding to zero.

Byju’s spectacular growth and aggressive expansion plans have led to sky-high valuations in recent funding rounds. However, the challenging macroeconomic conditions and losses reported by the startup raised concerns about its valuation. BlackRock’s prudent valuation adjustment indicates tough times ahead for highly valued startups in the current environment.

The write-down comes at a time when several other high-profile investors have also questioned unrealistic valuations in the Indian startup ecosystem. Byju’s has been pursuing an aggressive acquisitions strategy and aiming for global dominance in the edtech space. While this helped boost its valuation on paper, it has added significant debts to the balance sheet. Investors are said to be skeptical about the company’s ability to realize the enormous value ascribed to it in the future.