BYJU’S In Advanced Discussions To Sell Epic For $400 Mn To PE Firm Joffre

Troubled edtech giant BYJU’S is reportedly in advanced negotiations to sell its US-based children’s digital reading platform Epic for an estimated $400 Mn to private equity fund Joffre Capital.

BYJU’S is considering this sale as a means to alleviate financial challenges, Bloomberg reported.

The potential sale of Epic could provide the edtech company with the necessary funds to address its contested $1.2 Bn term loan, according to the report. Additionally, other interested parties, such as Duolingo, which specialises in creation and development of mobile learning platforms, have also shown interest in acquiring Epic.

BYJU’S acquired Epic in a $500 Mn deal in May 2022.

Moelis & Co. is overseeing the sale process for Epic, and a potential agreement could be reached by the end of this month. However, no final decision has been reached regarding the deal, and BYJU’S may choose to retain the assets for an extended period, the report said.

It was reported earlier that BYJU’S has put two of its subsidiaries, Epic and Great Learning, on sale and is looking to raise between $800 Mn and $1 Bn from it. BYJU’S was expecting to raise $400-$500 Mn from the sale of Epic.

Inc42 has reached out to BYJU’S and will update the copy on receiving a response.

BYJU’S is reportedly also exploring the sale of Aakash Educational Services Limited to tide over the financial challenges. The edtech company has engaged in discussions with private equity firms, including Bain Capital and KKR, regarding the potential sale of Aakash.

Furthermore, private equity firms like Carlyle have also shown interest in supporting Aakash Chaudhry, the former CEO of Aakash, and his family in their efforts to repurchase the company from Think & Learn Private Limited (parent of BYJU’S).

BYJU’S is involved in a confrontation with its lenders over the repayment of its $1.2 Bn Term Loan. The edtech major has been fighting a legal battle with its lenders over the repayment of its term loan.

Meanwhile, after multiple delays in releasing its financial statements for the financial year 2021-22, BYJU’S recently released some numbers for its core operations.

BYJU’S said excluding all acquisitions, Think and Learn Private Ltd (TLPL) – the parent entity of BYJU’S – reported an EBITDA loss of INR 2,253 Cr in FY22 as against an EBITDA loss of INR 2,406 Cr in FY21.

Cofounder and chief executive officer (CEO) Byju Raveendran said BYJU’S will ‘soon’ commence the audit process for FY23. In an internal mail sent to employees and seen by Inc42, Raveendran said the company expects the audit process for FY23 to complete in the coming months.