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Gloabl asset management company (AMC) BlackRock has reduced the implied valuation of its stake in edtech firm BYJU’S by 95% as of October 2023, according to a report.

The decrease in the value of BlackRock’s stake in the edtech company has resulted in BYJU’S being valued at $1 billion, which is a sharp decline from the $22 billion valuation in early 2022, TechCrunch reported, citing disclosures made by the asset manager.

At the end of October 2023, BlackRock indicated that it appraised the shares of BYJU’S at around $209.6 each, a decline from the 2022 peak of $4,660, the report added.

BlackRock, owning less than 1% of the stake, had reduced the valuation of its investment in BYJU’S by 62% as of March 31, 2023. Preceding this, BlackRock had cut BYJU’S valuation to $11.5 billion, nearly half of its earlier assessed value.

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YourStory has reached out to BYJU’S for a comment. The story will be updated with the company’s response.

Last November, Prosus marked down the valuation BYJU’S to less than $3 billion. In November 2022, Prosus first slashed the fair value of BYJU’S to $5.97 billion.

It is worth noting that an AMC’s evaluations of fair values are typically influenced by its internal assessment of the broader macro and microenvironment. 

The latest valuation cut comes at a time when BYJU’S is ridden with challenges, including the litigation surrounding the $1.2-billion term loan B, notice from the ED, troubles with the BCCI, and a liquidity crunch.