Educational giant Byju's explores potential acquisition of American reading platform Epic
Byju's, one of India's most valuable private internet companies, has sold its US-based reading platform Epic for $95 million in a distress sale. This sale is part of Byju's efforts to offload its US assets to meet creditor demands following a debt burden of $1.2 billion and ongoing insolvency proceedings.
The acquisition of Epic by Byju's took place in July 2021 for approximately $500 million. However, the recent sale is a result of the company's financial struggles. TAL Education, a Chinese education company, is the new owner of Epic.
Epic offers unlimited access to over 40,000 books, videos, and quizzes from more than 250 publishers to kids aged 12 or younger. It has reached over 50 million kids in the US and has raised over $51 million to date.
Byju's was co-founded in 2011 by Byju Raveendran and Divya Gokulnath. The Indian multinational educational technology and online tutoring firm has made several acquisitions in the past, including Mumbai-based ed-tech startup WhiteHat Jr. in 2020 for $300 million, and U.S.-based Osmo in 2019, which offers "blended learning" apps for kids aged five to 12.
The latest round of funding, expected to lift Byju's valuation to about $15 billion, is still ongoing. Byju's is in talks to raise up to $700 million from new and existing investors. The funding will reportedly be used to fund acquisitions in India and global markets, including the US.
Byju's is also in talks to acquire exam preparation firm Aakash Educational Services, valued at $700-800 million. If closed, this deal will be the biggest in the education space.
Despite these financial difficulties, Byju's remains one of India's most valuable private internet companies. The company's future acquisitions and funding rounds will be closely watched as it navigates through its financial challenges.
[1] Byju's sells Epic Learning to TAL Education for $95 million [2] Byju's sells Epic Learning to TAL Education for $95 million amid financial crisis [3] Byju's sells Epic Learning to TAL Education for $95 million in distress sale [4] Byju's sells Epic Learning to TAL Education for $95 million to meet creditor demands
[1] Byju's, a leading player in technology-based education and self-development, facilitated a distress sale of their US-based learning platform Epic to TAL Education for $95 million, as part of efforts to offload assets and meet creditor demands amidst ongoing financial struggles.
[2] Aligned with its strategic objectives, Byju's, a notable Indian multinational ed-tech company, executed a $95 million sale of Epic Learning to Chinese education giant TAL Education, in a bid to address their recent financial hardships and ongoing insolvency proceedings.
