Byju’s Explores $400 Million Sale of US-based Kids’ Digital Reading Platform

Byju's Explores $400 Million Sale of US-based Kids' Digital Reading Platform

VoM News Desk | November 6, 2023 | 03:45 PM IST | Breaking News | Follow on Google News

Byju’s Explores $400 Million Sale of US-based Kids’ Digital Reading Platform

Byju’s Explores $400 Million Sale of US-based Kids’ Digital Reading Platform

Indian education provider Byju’s is reportedly in advanced discussions to sell its US-based kids’ digital reading platform, Epic! Creations Inc., for approximately $400 million to Joffre Capital Ltd. This move is aimed at alleviating Byju’s financial pressures and securing funds for its ongoing financial challenges.

Epic! Creations Inc. Sale to Alleviate Financial Pressure

Byju’s is seeking to divest its US-based platform, Epic! Creations Inc., to raise funds for addressing its financial issues, including a disputed $1.2 billion term loan. The sale is expected to provide the necessary capital to address the loan’s repayment challenges.

Interest from Potential Bidders, Including Duolingo Inc.

Several parties have expressed interest in acquiring the platform, with Duolingo Inc. among the potential bidders. However, the specific details of the bidders and the acquisition process are being kept confidential as they are not yet public knowledge.

Byju’s has been entangled in a legal dispute with its creditors regarding a missed interest payment on a term loan, which the company had acquired to support its global acquisition spree during the pandemic. In September, Byju’s made a surprise proposal to its lenders to repay the entire $1.2 billion loan in less than six months through asset sales.

The sale of Epic! is being managed by Moelis & Co., and the finalization of the deal could occur as early as this month. However, the decision on the deal’s execution remains pending, and Byju’s may choose to retain the assets for an extended period.

Byju’s, formally known as Think & Learn Pvt, has been striving to reduce costs and minimize losses after the online learning boom during the pandemic began to wane. The company, once India’s most valuable tech startup, is now confronting legal disputes with creditors and regulatory scrutiny regarding its financial accounts.

Joffre Capital Ltd., a tech-focused buyout firm founded by Chinese dealmakers, is among the potential buyers, and it has been involved in previous acquisitions, including the purchase of the gay-dating app Grindr from Chinese internet company Kunlun Tech Co. in 2020.

Representatives for Byju’s, Moelis, and Joffre declined to comment on the matter. Duolingo Inc. has not responded to requests for comment.

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