BlackRock, a minority investor in Byju’s, has again cut the valuation of its holding in the Bengaluru-based startup, this time to around $8.4 billion, even as India’s highest valued startup continues to raise capital at a better price .
BlackRock cut Byju’s share price by 62% in the quarter ended March this year compared to a year ago.
Nonetheless, a series of qualifications are worth noting: BlackRock is not a substantial stakeholder in Byju’s, and owns less than 1% equity in the startup.
A similar move by Prosus, one of Byju’s key investors, would have raised more alarm for the Indian edtech leader. Additionally, it is worth noting that valuation methods may differ from investor to investor. Thus, other portfolio investors could potentially hold quite opposite views.
Moreover, Byju’s recently secured $250 million in fresh funding earlier this month at a valuation cap of $22 billion, indicating that the startup continues to be highly valued by other backers.
BlackRock’s price adjustment is the latest in a series of valuation markdowns for the Indian startup ecosystem. Invesco has cut Swiggy’s valuation by half, and Pine Labs and Pharmacies have also seen their valuations cut by some investors.