According to a report by Reuters, Byju’s is seeking to generate up to $1 billion through the sale of two companies as part of an effort to simplify its operations and settle outstanding debts.
According to Bloomberg News, Byju’s, the Indian educational technology company, is in the final stages of negotiations to sell its U.S.-based children’s digital reading platform Epic! Creations for approximately $400 million to the private equity fund Joffre Capital. This move is part of Byju’s strategy to secure funds and alleviate financial challenges, as reported by sources familiar with the situation. As per the latest report of Reuters published in September, Byju’s has been looking to raise $1 billion by selling two companies- Great Learning and Epic in a bid to repay their lenders.
The estimated sale of Epic will aid Byju’s $1.2 billion term loan, other bidders including duolingo which designs online mobile educational platform also expressed interest in buying Epic. Byju’s has not promptly addressed Reuters’ inquiry for a statement. Additionally, Joffre and Duolingo are currently unavailable for immediate contact due to it being outside their regular business hours in the United States. The sale process for Epic is being managed by Moelis and Co, and the report suggests that a potential agreement could be concluded by the end of this month.
Byju’s, supported by investors like General Atlantic, Prosus, and Silver Lake, with a valuation of $22 billion in the previous year, has faced a series of challenges. These include the departure of its auditor and board members. Moreover, the company has been engaged in discussions for the repayment of a $1.2 billion loan over the past few months.
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