Tech3 | Byju's worth zero for Prosus; Boost for IndiaAI; and more

One quick thing:?Next Bharat Ventures to launch Rs 350-crore fund

In today’s newsletter:?

• Byju's worth zero for Prosus
• Boost for IndiaAI: Govt to procure GPUs soon
• Meta AI makes India debut

Byju's worth zero for Prosus

It’s a fabulous story.?

Months after Byju’s cut its valuation by 99%, one of its biggest backers has wiped off the remaining value of the company on its books.

Driving the news:?In its annual report for FY24, technology investor Prosus has marked down?the value of its 9.6% stake in Byju’s to zero.?

• It has also recorded a $493 million fair value loss on account of its bet on the edtech firm

Meanwhile, Prosus and other Byju’s investors like Peak XV and General Atlantic are fighting multiple legal battles against the company’s management.

Is Prosus fighting over nothing?

No. In a post-earnings call with the media, Prosus said that it still has ‘hope’ for Byju’s future.?

"We are seeking protection of our rights and all shareholders. There are a number of actions that the company’s management has taken... The key for us is to change the governance of the company," the investor said.

In the rearview:?Byju’s investors have been able to get a?court order to temporarily stall the company?from using the money it raised through a rights issue, which cut its valuation by 99%.

• If Prosus and other investors lose the case, their shareholdings in the company are likely to be diluted to an insignificant amount

• The investors have also filed a lawsuit to oust the founder family of Byju’s from the helm over alleged ‘oppression and mismanagement’ claims

Silver linings: Prosus could be a big winner in Swiggy’s upcoming $1.2 billion initial public offer, but is?keeping mum on whether it will sell any stake in the process.

• Its Indian fintech business PayU helped drive the segment’s revenue by 38% to $1.1 billion in FY24

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