BlackRock Slashes India’s Byju’s Valuation by 95% to $1 Billion

BlackRock Slashes India’s Byju’s Valuation by 95% to $1 Billion

BlackRock, the global investment management company, has slashed the valuation of India’s online education startup, Byju’s, by 95% to $1 billion. This reduction comes as concerns mount over the inflated valuations of Indian startups and their ability to sustain these high valuations. Byju’s, founded in 2011 by Byju Raveendran, offers a learning app for K-12 students that combines video lessons and interactive tasks. The company has gained popularity and financial support from investors, including the Chan Zuckerberg Initiative, which valued Byju’s at $10.5 billion in 2020. However, BlackRock’s decision to significantly reduce the valuation reflects the challenges faced by Indian startups in maintaining their high worth. Despite this cut, Byju’s remains one of India’s most valuable startups, highlighting the startup’s potential and relevance in the online education space. The valuation cut is also a reminder for the Indian startup ecosystem to prioritize sustainable and realistic valuations, considering the uncertainties and risks associated with high valuations.

TIS Staff

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