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.
HSBC has assigned zero value to investment company Prosus' nearly 10 per cent stake (or about $500 million) in Byju's.
"We assign zero value to Byju's stake amid multiple legal cases and funding crunch," according to the HSBC note.
"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.
The embattled edtech firm is struggling to pay employee salaries amid mounting legal battles.
"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.
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.
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.
BlackRock owns less than 1 per cent of Byju's.
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.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Featured Video Of The Day
Watch: Flight Carrying T20 WC-Winning Team India Receives Water Salute
Byju Raveendran Failed Because He Didn't Listen To Anyone: Unacademy CEO BYJU'S Starts New Batches At 240 Out Of 262 BYJU'S Tuition Centres Byju's Clears March Salary Of Employees After CEO Takes Personal Debt: Report "Got Rs 98 Lakh, But...": Agniveer's Family Amid Debate Over Compensation In Tit-For-Tat Move, Congress Flags PM Modi's Speech In Parliament Senior Lawyer Points To 'China Link' In Hindenburg's Attack On Adani Group "Loopholes And Lapses": Court Raps Gujarat Over Rajkot Gaming Zone Fire Israel Okays New Payment Of Over $140 Million To Palestinian Authority Putin Says He Takes Trump's Comments On Ending Ukraine War "Seriously" Track Latest News Live on NDTV.com and get news updates from India and around the world.