Prosus, the Dutch tech investor, has written off the value of its 9.6% stake in the edtech company Byju’s, marking one of the largest write-offs in tech startups by a prominent investor. In its FY24 annual report released on June 24, Prosus recorded a fair value loss of $493 million on its investment in Byju’s. This decision stems from a significant drop in value for equity investors.
"In this financial year, the group wrote off the fair value of its 9.6% effective interest in Byju’s, due to the significant drop in value for equity investors. A fair value loss of $493 million was recognized in other comprehensive income in the current year," stated Prosus in its annual report.
Since 2019, Prosus had invested $536 million in Byju’s across multiple funding rounds. "We impaired Byju’s down to zero at the end of FY24. The fair value written down was $493 million for FY24," said a Prosus spokesperson.
The primary reason for this write-off is the lack of adequate information regarding Byju’s financial health, liabilities, and future outlook. "We have written down Byju’s primarily because we have inadequate information on the company’s financial health, liabilities, and future outlook," the spokesperson added.
An industry insider noted, "We have seen several write-downs and write-offs but not of such value."
During a post-earnings call, Prosus interim Chief Executive Officer Ervin Tu addressed the situation with Byju’s, stating, "We are seeking protection for our rights and other investors beyond the rights issue. We have hope for the company’s outlook and the key for us is to change the governance of the company. That’s what has driven our actions."
