Baron Capital Cuts Byju's Valuation By 99.85%

US asset management firm Baron Capital Group has drastically reduced its stake valuation in edtech company Byju's by 99.85 per cent as of 31 March, 2024, leading to Byju's being valued at approximately USD 24 million.

This is a significant decrease from its peak valuation of USD 22 billion in October 2022, and is in line with concerns over Byju's USD 200 million rights issue. Holding 15,334 shares through Baron Emerging Markets Fund and 9,201 shares via Baron Global Advantage Fund, Baron Capital valued its investment in Byju's at USD 75,485 and USD 45,294, respectively, based on the current share price and total outstanding share count.

Byju's had initiated a rights issue to raise USD 200 million via equity at a pre-money valuation of about USD 20 million. The AMC quarterly report indicated that Snowflake and “a final write-down of Think & Learn” had each impacted it by over 50 basis points.

This development comes as Byju's faces challenges including financial strain and legal disputes with prominent investors. Mohandas Pai and Rajnish Kumar will not renew their contracts as advisory board members at Byju's Separately, Baron Capital increased the valuation of its stake in Swiggy to USD 109.16 million from its original investment of USD 76.77 million.