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Valuation is ever-fluctuating in the wild world of startups.
Byju’s journey from a dazzling $22 billion valuation to a sobering $1 billion serves as a stark reminder of the volatile nature of tech valuations.
Like many unicorn stories, Byju’s journey is filled with ambitious expansion, celebrity endorsements, and a reality check that’s hit harder than a rejection from your high school crush.
Once the poster child of India’s ed-tech boom, Byju’s valuation soared as high as $22 billion, attracting heavyweights like BlackRock and the Chan Zuckerberg Initiative.
Imagine, an ed-tech firm turning into a unicorn, then galloping into a valuation that rivaled tech giants.
It’s like a school project that suddenly gets called up for a Nobel Prize!
It is amazing to any founder and much respect to that.
But fast forward to today, and the picture is drastically different.
“Byju’s Alpha, the U.S. arm of Indian edtech Byju’s, is grappling with financial woes. It has filed for bankruptcy due to a staggering default on $1.2B of debt, as reported by Bloomberg.”
BlackRock, one of its investors, slashed Byju’s valuation viciously.
It’s like watching a high-flying rocket suddenly lose altitude and head back to Earth.
From $22B to $1B.
That’s abyssmal.
Why, how and what?
What led to this dramatic flop?
Well, it’s a mix of overzealous expansion, aggressive marketing, and perhaps, a dash of overconfidence.
Byju’s, in its heyday, sponsored everything from the Indian cricket team to the Football World Cup and even had Lionel Messi on its side.
It’s like a small-town actor suddenly headlining Broadway, but then the curtains close unexpectedly.
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