BYJU’S Explores $400 Million Sale of Epic, Attracting Interest from Joffre Capital and Other Buyers
- ByStartupStory | November 7, 2023
BYJU’S, the edtech giant, is reportedly in advanced discussions to sell its asset, Epic—a digital reading platform for children, to tech-focused buyout firm Joffre Capital Ltd in a deal estimated to be worth about $400 million, as part of the company’s strategy to repay a significant debt associated with a $1.2 billion term loan B (TLB) owed to its lenders.
The sale process for Epic is being overseen by Moelis & Co, and a potential deal could be finalized as early as this month, although no final decision has been reached. US-based edtech firm Duolingo and others have also expressed interest in acquiring Epic.
BYJU’S has not commented on the matter, and comments from Joffre Capital and Duolingo are awaited. In 2021, BYJU’S acquired Epic for $500 million, aiming to expand its presence in the US market. Earlier in September, reports indicated that BYJU’S was considering selling two of its assets, Epic and Great Learning, with the aim of generating a minimum of $800 million to repay the TLB debt. This divestiture aligns with the firm’s plan to accelerate repayment to its lenders, intending to fully repay the TLB within six months.
In FY22, BYJU’S core business reported a total income of Rs 3,569 crore, up from Rs 1,552 crore in the previous year. The EBITDA loss decreased to Rs 2,253 crore from Rs 2,406 crore in the previous financial year, according to a company statement. However, specific net loss figures for the core business were not disclosed. The company also did not reveal consolidated revenue and profit/loss numbers for FY22, a year in which it made nine acquisitions.
Despite the boom in edtech following the pandemic, BYJU’S continues to face various challenges, including conflicts with TLB lenders and ongoing issues related to its test prep unit, Aakash.
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Last month, BYJU’S lenders appointed Kroll, a risk and financial advisory solutions firm, to safeguard the assets held by Great Learning Education Pte. Ltd. and BYJU’S Pte. Ltd., the firm’s Singapore entity. BYJU’S had acquired skilling startup Great Learning for $600 million in 2021.
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