Re:Byju's seeks $200M in rights issue at 99% valuation cut
by georgeecollins on Wednesday January 31, 2024 @11:58AM
(#39206112)
Things can be seriously over valued without a crime being committed. Market euphoria, hucksters who don't exactly lie. Not always a crime but something to be aware of. Valuation is not liquidity.
Re:Byju's seeks $200M in rights issue at 99% valuation cut
by darth_avocado on Wednesday January 31, 2024 @11:59AM
(#39206134)
How do your losses in an online ed startup be $1B when the revenue is $0.6B? WTF are you spending that much money on? Offshore retirement accounts for friends and family?
Re:Byju's seeks $200M in rights issue at 99% valuation cut
by ActionHank on Wednesday January 31, 2024 @12:13PM
(#39206376)
Not to mention that the bulk of their employees appear to be based in areas where salaries are comparatively significantly lower than in the US.
This has to be either massively over run cloud expenses or, more likely given the scale of losses, “spent” on expenses that are essentially friends and family.
https://www.youtube.com/watch?v=f6LEmND8Xdk
Sunk cost fallacy? Or delaying criminal charges? There is no way a valuation can drop this much without some serious scam involved.
Stock sold to existing shareholders. It usually means the price is lower than what could have been garnered in the open market.
Edit: did some very superficial digging and it looks like they went on a very aggressive acquisition spree. Bought a bunch of other startups for hundreds of millions. https://www.reuters.com/markets/deals/indian-edtech-startup-...
This has to be either massively over run cloud expenses or, more likely given the scale of losses, “spent” on expenses that are essentially friends and family.