New Delhi: 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. “We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” HSBC said in a note on May 21. “Previously, we valued around 10% stake in Byju’s by applying (an) 80% discount to the latest publicly disclosed valuation.”

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. (Also Read: BSE Denies Technical Glitch On June 4 Causing Mutual Fund To Lose Money On Election Day)

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 (NYSE:BLK) 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. (Also Read: RBI Sticks To 6.5% Key Lending Rate For 8th Consecutive Time, Fighting Inflation Remains Focus)

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.