Fabricio Bloisi, the new CEO of Prosus, said that the investment firm will continue to bank on early-to-late stage companies in India despite the collapse of its once-high-flying portfolio arm Byju’s.
The company's investments in the country stand at around $7 billion with key portfolios such as Swiggy, Meesho and Urban Company
Fabricio Bloisi, the new CEO of Prosus, said that the investment firm will continue to bank on early-to-late stage companies in India despite the collapse of its once-high-flying portfolio arm Byju’s.
In an interview given to ET on his first visit to India since his appointment, Bloisi reportedly stated that Prosus doesn't “live by cycles”, and the valuation reset in the technology world is typical of the funding cycles for the sector, which doesn’t deter long-term investors from taking bets on India.
Bloisi stated that investments in India continue to be a “global priority” for the company as its investments stand around $7 billion with key portfolios such as Swiggy, Meesho and Urban Company.
Byju's and PharmEasy
Talking about the Byju’s debacle, Bloisi reportedly said, “We had some governance problems inside the company (Byju's)... and were disagreeing about how it was managed for some time even before major issues cropped up."
Prosus had written off $500 million in Byju’s in which it had a 10 per cent stake. Last year, Prosus' representative resigned from edtech's board committee, along with shareholders such as Peak XV partners and the Chan Zuckerberg Initiative. The investors are also fighting a legal battle at NCLAT alleging the company’s mismanagement and governance lapses.
Apart from Byju’s, the pharmacy start-up PharmEasy was also weighing heavily on the investment firm's shoulders, as it slashed 90 per cent from its peak valuation of $5.6 billion when it raised funds in a rights issue last year.
Investments in GenAI and Online Marketplaces
Bloisi reportedly stated that Prosus is looking for investments in GenAI along with online marketplaces in India.
"Our goal is to unlock an AI-first world,” he reportedly said. “We think everything is going to change and so will every kind of company... So if you are a little nervous that things are changing so much, so quickly, the bad news is that it's going to change even more... While it's a risk, it is also a big opportunity,” he told ET.
It is reported that Bloisi had set up 15 meetings in Bengaluru, calling it an “AI Day”.
Bloisi said that there are 5-10 companies from India in its portfolio which are likely to tap the public markets over the next few years. This includes PayU India and Swiggy.
Prosus which holds 33% stakes in Swiggy which is preparing for an initial public offering (IPO).