Prosus has written off its entire 9.6% stake [1] in Indian edtech company BYJU's, marking the investment value down to zero.

The move signals a complete collapse in confidence regarding the valuation of one of India's most prominent educational technology startups. This write-off reflects a broader struggle for the company to maintain its previous market standing.

Prosus recorded a $498 million impairment for the 2024 fiscal year [2]. This accounting adjustment follows a dramatic decline in the valuation of BYJU's, which fell from $22 billion to approximately $1 billion [3]. This represents a 95% drop [3] in the company's overall value.

"We impaired BYJU’S down to zero at the end of FY24…The fair value written down was $498 million for FY24," a Prosus spokesperson said [4].

The impairment was announced on June 24, 2024 [5]. The decision to mark the investment to zero suggests that Prosus no longer expects to recover the capital deployed into the venture. The company's valuation crash marks a significant shift in the edtech landscape, a sector that saw massive growth during the pandemic but has since faced severe headwinds.

Prosus, a global consumer internet group, had previously held a significant position in the company. The write-off effectively removes the asset from the group's balance sheet as a value-generating entity [1].

“Prosus recorded a $498 million impairment for the 2024 fiscal year”

This write-off highlights the volatility of the edtech sector and the risks associated with hyper-growth valuations. By marking the investment to zero, Prosus is acknowledging that the previous $22 billion valuation was unsustainable. This event serves as a cautionary marker for venture capital investments in the region, shifting the focus from aggressive expansion to sustainable fiscal management.