Byju’s is in advanced talks to sell its US-based kids digital learning platform Epic for USD 400 million to Joffre Capital
The troubled edtech platform Byju’s is in advanced talks to sell its US-based kids digital learning platform Epic for USD 400 million to Joffre Capital in an effort to reduce its financial burden, according to a report from Bloomberg.
With the sale of Epic Creations Inc, Byju’s would raise funds to pay a USD 1.2 billion term loan. Other bidders like Duolingo Inc showed their interest in buying as well.
Byju’s and its creditors entered into conflict over a missed interest payment on a term loan that the startup had taken out to finance a global acquisition spree during the pandemic. Later, the firm surprised financiers with a repayment proposal for selling off assets to pay back the USD 1.2 billion debt in less than a span of six months.
Moelis & Co. a tech-focused buyout firm started by Chinese dealmakers handling Epic’s sale and the deal is expected to close the purchase by the end of this month.
Last week, Byju’s parent Think and Learn Private Limited (TLPL) posted its financial audit results of FY22. The edtech company has reported FY22 revenue of Rs 3,569 crore, with a marginal drop in EBITDA loss as per a release. Excluding all acquisitions Byju’s has reported growth in total income surging to Rs 3,569 crore from Rs 1,552 crore in the previous year.