Byju’s is reportedly in advanced talks to sell its kids’ digital reading platform for roughly $400 million to Joffre Capital Ltd, in an effort to relieve its financial strain, according to a report from Bloomberg.
“The potential sale of Epic! Creations Inc. would help Byju’s raise funds to pay down a disputed $1.2 billion term loan, people familiar with the matter said. Other bidders, including Duolingo Inc, have also expressed interest in buying the platform, they said, asking not to be named as the information isn’t public,” the Bloomberg news report said.
A late interest payment on a term loan that Byju’s took out to help finance its global acquisition spree during the pandemic has put the firm and its creditors at odds. According to a September Bloomberg News story, the firm surprised financiers with a repayment proposal that called for selling off assets to pay back the $1.2 billion debt in less than six months.
According to those familiar with the matter, Moelis & Co. is handling Epic’s sale, and a transaction might be completed as soon as this month. According to Bloomberg, the persons stated that Byju’s may decide to hold onto the assets for a longer period of time and that no final decisions have been made regarding the purchase.
“Representatives for Byju’s, Moelis and Joffre, a tech-focused buyout firm started by Chinese dealmakers, declined to comment. A representative for Duolingo didn’t respond to a request for comment,” said the Bloomberg report.
Last week, Byju’s parent Think and Learn Private Limited (TLPL), has released its financial audit for FY22. The edutech company has reported FY22 standalone revenue up at ₹3,569 crore, with a marginal drop in EBITDA loss, as per a release.
Excluding all acquisitions, the core business of Think & Learn, BYJU’S, has reported substantial growth, with total income surging to ₹3,569 crore from ₹1,552 crore in the previous year, marking a robust 2.3x increase.
