Edtech company BYJU'S explores $400 million Epic sale
BYJU'S, the prominent edtech company, is reportedly in advanced negotiations to divest its asset, Epic, a digital reading platform designed for children. The potential buyer is Joffre Capital Ltd, a tech-focused private equity firm, and the deal is estimated to be valued at approximately $400 million. This move is part of BYJU'S strategy to address a significant debt linked to a $1.2 billion term loan B (TLB) owed to its creditors. The sale of Epic is being managed by Moelis & Co, and a final agreement could be reached as soon as this month, although no definitive decision has been made. Several other parties, including U.S.-based edtech company Duolingo, have also expressed interest in acquiring Epic.
BYJU'S has not provided any official comments on the situation, and we are awaiting statements from Joffre Capital and Duolingo. In 2021, BYJU'S acquired Epic for $500 million as part of its efforts to expand its footprint in the U.S. market. In September, reports indicated that BYJU'S was contemplating the sale of two of its assets, Epic and Great Learning, with the goal of generating at least $800 million to settle the TLB debt. This divestment aligns with the company's strategy to expedite debt repayment, with the intention of fully satisfying the TLB within a six-month timeframe.
In the fiscal year 2022, BYJU'S primary business recorded a total income of Rs 3,569 crore, a significant increase from the previous year's Rs 1,552 crore. According to a statement from the company, the EBITDA loss decreased to Rs 2,253 crore from Rs 2,406 crore in the preceding fiscal year. However, precise details regarding the net loss of the core business were not disclosed. Furthermore, the company did not disclose the consolidated revenue and profit/loss figures for FY22, despite making nine acquisitions during that year.
