![\"Byju's,](\"https:\/\/c.ndtvimg.com\/2022-11\/mh11kjs8_byju-raveendran-afp-650_625x300_01_November_22.jpg?im=FaceCrop,algorithm=dnn,width=650,height=400\"\/ "\\"Byju's,")
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Byju’s was preparing to go public in early 2022 through an SPAC deal<\/p>\n<\/div>\n
In what could be a shocker to many, edtech firm Byju’s, which was once valued at $22 billion, is now worth zero, according to a research note by financial firm HSBC.<\/p>\n
HSBC has assigned zero value to investment company Prosus’ nearly 10 per cent stake (or about $500 million) in Byju’s.<\/p>\n
“We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” according to the HSBC note.<\/p>\n
“Previously, we valued around 10 per cent stake in Byju’s by applying an 80 per cent discount to the latest publicly disclosed valuation,” the note added.<\/p>\n
The embattled edtech firm is struggling to pay employee salaries amid mounting legal battles.<\/p>\n
“Byju’s is facing multiple headwinds. We and other shareholders are working everyday to improve the situation. We are in close discussions with the company every day,” a senior Prosus executive was quoted as saying in reports late last year.<\/p>\n
In fact, Byju’s was preparing to go public in early 2022 through an SPAC deal that would have valued the company at up to $40 billion.<\/p>\n
In January this year, US-based investment firm BlackRock cut the value of its holding in Byju’s to a mere $1 billion from $22 billion in early 2022.<\/p>\n
BlackRock owns less than 1 per cent of Byju’s.<\/p>\n
Earlier this week, a group of lenders petitioned against the new entities tied to Byju’s US subsidiary into bankruptcy in a US court, alleging that these entities are not paying their debts.<\/p>\n
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)<\/i><\/p>\n<\/div>\n
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