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Byju says no science behind valuation

Byju says no science behind valuation- Grapevine

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Byju Raveendran, the founder of Byju's, once a big player in the edtech game with a $22 billion valuation, now says the company is basically worthless. He blames this on some bad decisions, fast expansion, and a tough market that got worse when key investors pulled out. Despite the gloomy news, Raveendran is still holding out hope for a bounce-back.

Byju’s Founder Admitted Edtech Value Has Dropped To 'Zero - Looma News

Byju valuation is zero Now

Software Engineer

Byju's now valued at $0 🙈

Product Manager

Sad state of Indian Edtech. Next would be Unacademy.

BlackRock has yet again cut the value of its holding in Byju's, slashing the implied valuation of the Indian startup to $1 billion from $22 billion in BlackRock has cut the value of its holding in Byju's, slashing the implied valuation of the Indian startup to $1 billion from $22 billion in early 2022.

BlackRock cuts Byju's valuation by 95% to $1 billion | TechCrunch

Just in : BlackRock cuts Byju’s valuation by 95% to $1 billion 🌀

Software Developer

Program Manager

Hiring for a bunch of roles for an early stage startup. Salaries of people who have been laid off is through the roof

2-3 years experience asking for 30-40l and while we chose not to judge the experience and spoke to a few of them, most of them are not even worth half of the pay. 

Many are jobless since last 2-3 months and none of them are willing to take a paycut of even 5-6L and are willing to stay jobless ( probably have a ton of savings )

Market correction is necessary.

Roles : PM, software engineers, generalists

What's wrong with salaries

If you are paid less, don’t extrapolate it on others. If they are willing to wait, let them. You should keep praying for “corrections”.

Investment giant Prosus has written down the valuation of edtech giant Byju's to below $3 billion, marking a steep drop from the $22 billion valuation the Prosus has marked down the valuation of Byju's, India's most valuable startup, to below $3 billion.

Prosus cuts valuation of Byju's, India's most valuable startup, to below $3 billion | TechCrunch

Byju’s valuation reduced from $22Bn to sub $3Bn by Prosus

Corporate Strategist

Most of us are curious of how decisions are made in major VC funds, as these funds are private and only share this information with their Limited Partners (LPs).

For the unknown, there are VC funds known as Corporate Venture Capital funds, which are the venture arms of corporate firms; they are required to disclose the performance of their CVC funds to the general public.

Prosus, one of the largest funds in this category, has just released its 2024 Annual Report, so thought it would be helpful to share the key takeaways with you all. So, here we go:

1/ Swiggy: On the Launchpad
Swiggy continues to impress with a 26% surge in its gross order value and a robust user base that's grown to 104 million. The food delivery giant isn't just expanding—it's preparing to soar with a confidential IPO filing. Swiggy's blend of core deliveries and quick-commerce ventures positions it as a frontrunner in the food-tech race.

2/ Byju's: A Reality Check
The tides have turned for Byju’s, once a darling of the edtech world, now facing a stark reality with a $493 million valuation write-down by Prosus. This significant markdown is a wake-up call to the high-flying valuations in the edtech sector, spotlighting the need for sustainable financial health over speculative growth.

3/ PayU: Quietly Confident
While specific updates on PayU were sparse, its role in Prosus’s fintech ambitions remains pivotal. PayU continues to weave through Prosus's strategy, likely focusing on enlarging its digital payment solutions and tapping into burgeoning financial service opportunities in emerging markets.

4/ PharmEasy: Unsung Potential
PharmEasy's story remains under the radar in this year’s dispatch. However, as a component of Prosus's health tech ventures, it’s poised to play a crucial role in expanding accessible digital healthcare solutions, streamlining services from prescriptions to doorstep delivery.

The Bigger Picture? Prosus's strategy paints a vivid portrait of India's evolving startup ecosystem. It's no longer just about rapid growth and sky-high valuations. The game has changed:

1/ Sustainability is king: Byju's fall from grace is a stark reminder that financial health trumps speculative growth.
2/ IPO readiness matters: Swiggy's preparations show the market's appetite for well-prepared tech giants.
3/ Quiet expansion: PayU and PharmEasy's low-key presence suggests strategic focus on steady growth over flashy headlines.
4/ Diversification is key: Prosus's varied portfolio highlights the importance of spreading bets across sectors.

Checkout their annual report at https://www.prosus.com/~/media/Files/P/Prosus-CORP/AR2024/1latestfinancialresults/04annualreport/fy2024annualreport.pdf - happy reading!

Would you like more breakdowns of such reports and documents? Let us know in comments below 👇🏽

Key takeaways from Prosus 2024 Annual Report

- Byju's founder, Raveendran, declared the company's worth as zero after key investors resigned from the board.
- The resignations made it impossible for the edtech firm to raise further funds.
- Raveendran expressed regret over taking the Term Loan B, which he described as the most expensive capital.
- The company is currently undergoing bankruptcy proceedings, with the National Company Law Tribunal initiating insolvency proceedings against Byju's.
- Despite the crisis, Raveendran remains optimistic about a turnaround and insists there has been no fraud within the company.

Source: [Economic Times](https://economictimes.indiatimes.com/tech/technology/investors-leaving-board-was-biggest-setback-byjus-now-worth-zero-founder-raveendran-our-bureau/articleshow/114320123.cms)

Byju's Founder Declares Company Worth Zero After Investor Exodus

30% of engineers will be gone.
50% of higher managenment will be gone.
List contains a total of 80 devs/managers/directors/Vp/CTO from Tech team, reducing the Tech Team size to merely 130.

How does byjus justify their valuation, when there is no value ?

Byjus 6th Round on 4th Dec 🥲

Remember that poem 'Ozymandias'

Business Analyst

Welcome to Office Gossip's Private Community

https://www.moneycontrol.com/news/business/startup/blackrock-cuts-byjus-fair-value-by-62-for-the-second-time-since-october-2022-10701291.html

Byjus valuation dropped to $8.4 billion by BlackRock

Engineering Manager

Apart from unethical sales practices, toxic work culture and mindless accusations, what do you think went wring with Byju’s.

Why do you think Byju’s is falling?

[2011- 2021] Employees at 22b $ valuation: upto 10K

[2022 - 2024] Between this period byjus employees count went upto 50k and within a year came down back to original. 

[2024] Employees at 3b $ valuation: 12k

So what went wrong in 2022 and 2023 ?

The Answer to this is CORPORATE MAFIA
You can identify them from their operation

1) At first couple of the members of the mafia will join any organisation as a leader.
2) Initially they will build good relationships with leadership and set imaginary sweet goals for organisational growth and sell lies.
3) They lay off / underpay existing loyal employees
4) Finally they replace existing employees with their ex- colleagues and friends who were comparatively less productive but more expensive.
5) They will take all the growth opportunities and share among themselves.
6) At the end the organisation cost increases but the actual goal is still far enough to be achieved ever.

Why did Byjus Fall from 22b $ to 3b $ ?

Byju’s manages to raise more capital… yet again 👀

Discord Layoff 17%

Case registered earlier this month appears to involve a dispute on sponsorship payments for the Indian cricket team.

BCCI drags Byju’s to NCLT

Byjus turning profitable

Growth Manager

99% off. Now $120Mn only.

Byjus Valuation Sliced By 99% - Rasing a 200 million $ through rights issue at 250 million dollars

- PhysicsWallah is set to raise $150 million led by Hornbill Orchid, valuing the firm at $2.8 billion.
- This marks a 2.5x increase from its last valuation in 2022 when it raised $102 million at $1.1 billion.
- Hornbill Orchid will contribute $70-80 million, with Lightspeed Venture Partners also participating.
- Despite a 91% drop in profits in FY23, the company aims to hit Rs 2,400 crore in revenue for FY24.
- The ed-tech sector faces challenges, including funding slowdowns and corporate governance issues. 

 Source: [The Arc](https://thearcweb.com/article/physicswallah-alakh-pandey-hornbill-orchid-lightspeed-4EN35JlQnHYEDas1)

Byju says no science behind valuation

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