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Macquarie’s value remained at $22 billion. The company continued to send bullish updates on Biju to investors in its Julius Baer co-investment vehicle, explaining in May how it was “encouraged” by the company’s “focus on profitability” in its India operations. In October, Mr. McCauley told Julius Baer that Byju’s would generate “double-digit revenue growth” in the previous fiscal year, according to the documents.
Both of these updates were announced after Byju’s asked creditors for more time to renegotiate a $1.2 billion loan that breached its covenants. The company was also accused of misselling its products, including claiming it was recruiting families who couldn’t pay for its services, and was forced to change its sales process.
Byju’s is also embroiled in lengthy legal proceedings in the United States over $533 million allegedly tied up in offshore accounts and hidden from investors.
Mr Macquarie had previously denied reports about the Byju’s funding, telling investors in May that the two companies were “incompatible with each other”. The company told Julius Baer that it is “very positive about the growth and profitability” of Byju’s India K12 business and is “encouraged by the company’s focus on profitability and efforts to reduce cash burn in its international division.” “We are closely monitoring the situation,” he said. Results of his 2022 audit of Byju.
Deloitte, Byju’s auditor, severed ties with the company in June last year, citing “protracted delays” in filing financial statements. Later he was replaced by BDO.
“Macquarie understands that discussions regarding potential funding are ongoing and that there are some preliminary discussions regarding a listing. “We will only contact limited partners if there are any updates,” the company said in a May investor update.
Macquarie told investors in October that Byju’s management report showed the company had “delivered strong revenue growth” and had broken even on earnings before interest, tax, depreciation and amortization in the previous financial year. He said it would be a point.
Macquarie said in an October update that Byju’s is cutting staff and marketing costs and expects revenue to reach about $1.24 billion in the last financial year. Mr Macquarie last updated in October when he said he expected to reduce the value of Byju due to the “current circumstances”.
A Macquarie spokeswoman declined to provide details of how much the company had raised for its MC Global Edtech Investments Holdings business.
“For this investment, Macquarie’s valuation will be independently audited annually and fees will be charged retrospectively (in April of each year),” he said on Monday. “Accordingly, the valuation and fees covering the period in which Bijou’s situation deteriorated will be charged next month. You will be charged.”
“Furthermore, Macquarie made it clear in its presentation last October that it intended to downgrade Bijou’s valuation for the year-end period in April.
“Byju’s commentary, taken from Macquarie’s May 2023 presentation, states that the commentary is based on Byju’s December 2022 operating data.”
Julius Baer intervenes
As reported, financial review Yves Bonzon, Julius Baer’s chief investment officer, on Sunday wrote to Macquarie in January, calling for an “urgent review and discussion”.
Bonzon said Macquarie had no incentive to “devalue its position” in Bijouz even after other investors reduced the company’s valuation. Bonzon also said that Julius Baer’s requests were “often unanswered or subdued,” while information about Biju’s “audit schedule, financial practices, and balance sheet restructuring” was “not adequately communicated.” “This was usually done in response to our request rather than proactively.”
Byju was founded by Byju Raveendran in 2011 and saw a surge in popularity during the COVID-19 pandemic. Investment firms including General Atlantic and Silver Lake came forward to invest in Bijou’s, which had ambitions of an initial public offering.
In a presentation at the time, Macquarie pitched the Series F round to investors alongside BlackRock and T. Rowe Price, which valued Biju at $12 billion.
Julius Baer investors participated in the Macquarie vehicle through the Swiss bank’s co-investment feeder fund. The minimum contract amount was $250,000 and the subscription fee was 1-3%. Macquarie charged an annual management fee of 1% based on the value of Byju.
In December 2021, as part of early investor communications, Macquarie said Byju’s “run rate revenue” was approximately $1.5 billion, and the company’s EBITDA reached $50 million in the first quarter of the fiscal year. Ta.
Julius Baer, which entered into a partnership with Macquarie in 2011 to introduce clients to Australian investment banks, cut the value of its feeder funds by about 80 per cent in December last year. Byju’s also slashed its valuation by 99% when it sought to raise $200 million through a share issue in January.
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