Global investor Group Prosus came out with its annual report containing details on how its investments are performing on June 27. Prosus has focused its investment efforts on India and has provided financial support to multiple Indian companies, including Swiggy, BYJU’S, Meesho, PharmEasy, and Zest Money, to name a few. Here is a rundown of the performance of some of its major Indian investments.
Prosus’s annual report says that Swiggy’s core restaurant food-delivery business experienced a year-on-year (YoY) increase of 26% in gross merchandise value (GMV, total sales made by a company in a specific period) in the financial year 2023. Its quick-commerce business, Instamart, continued to expand fast, generating GMV growth of 459% YoY. Prosus has invested $299 million in the company and holds 32.83% interest in it. It says Swiggy has been focusing on reactivating users, increasing monthly frequency, and improving user conversion as of late. “Our share of Swiggy’s trading loss increased to US$180m (FY22: US$100m), driven by investment in Instamart, which peaked in the year,” the report mentioned.
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Prosus has invested US$536 million in BYJU’S since 2018 and currently holds a 9.6% stake in the company. “The group recognised a gain on loss of significant influence of the associate of US$22m, including a reclassification of the accumulated foreign currency translation losses of US$55m,” it said, implying that the loss of influence in the company had resulted in a profit. It also mentioned that it has stopped equity accounting for the company as of September 2022.
BYJU’S has taken a significant hit this year with stories of layoffs and Deloitt stepping off as the company’s auditor. Prosus mentioned that the fair value of their investment in BYJU’S is $493 million which, according to a report by Fortune, takes cumulative valuation of BYJU’S to $5.1 billion, which is 75% lower than BYJU’S $22 billion valuation last year.
The report mentions that Prosus has increased its interest in the e-commerce startup Meesho – the group holds a 13.83% interest (12% fully diluted) in the company. It said that it made an additional investment in Meesho of $134 million in September 2021. According to Prosus, the company is doing fairly well – it says that the company is India’s third-largest online marketplace by GMV and receives 3 million average daily orders.
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