Indian company Byju’s plans to raise $1 billion from the sale of Great Learning and Epic

[1/2]Billboards of Byju’s, an education technology company and one of India’s largest startups, are pictured outside one of its branches in New Delhi, India, June 23, 2023. REUTERS/Adnan Abidi acquire license rights

MUMBAI/NEW DELHI, Sept 11 (Reuters) – Indian education giant Byju’s plans to sell two companies it acquired in 2021 – Great Learning and Epic – to raise up to $1 billion to streamline its operations and to repay lenders, two sources with direct knowledge of the matter told Reuters.

Byju’s, which was valued at $22 billion last year, has experienced a series of business crises, including the resignation of its auditors and board members, and has been struggling to repay a $1.2 billion loan in recent months negotiated.

With backing from investors such as General Atlantic, Prosus and Silver Lake, Byju’s may also sell more assets to raise cash in the future, both sources said.

A spokesman for Byju’s did not immediately respond to a request for comment.

While Epic is a US-based reading platform that Byju’s acquired for $500 million, Great Learning is an Indian company offering continuing education courses and degrees that Byju’s acquired for $600 million.

Byju’s expects up to $1 billion in total – about $400 million to $550 million for Epic and $350 million to $450 million for Great Learning, part of a “business turnaround strategy,” said the second source with direct knowledge.

The Indian business newspaper Economic Times reported on the plan on Monday.

Byju’s plans to sell the two companies are part of a “strategy review” to divest from other businesses and focus on its original area of ​​K-12 education (kindergarten to secondary), the source said.

Byju’s has received letters of intent to sell Epic, the second source said, although the source did not specify from whom. Among other education companies, Byju’s is also planning to rope in private equity investors for the sale of the two companies, the first source said.

Both sources declined to be named due to the private nature of the discussions.

In June, three members of Byju’s investor board resigned from the company’s board without explanation, leaving only company executives on the board. On the same day, auditor Deloitte quit midway through the audit, saying there was a “significant impact” on its ability to conduct the audit to required standards after the company’s financial reports were “delayed for a very long time.”

Three senior executives, including the company’s general manager, quit their jobs last month.

Reporting by M. Sriram and Aditya Kalra; Editing by David Evans

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Sriram leads Reuters’ deal coverage in India, including reporting and writing on private equity funds, IPOs, venture capital, corporate M&A and regulatory changes. His reports include insights into major transactions as well as in-depth analysis and insightful stories about the inner workings of companies, funds and industry trends that fly under the radar. He has been a business journalist for five years and holds a degree in financial journalism from the Asian College of Journalism’s Bloomberg program. He completed the first course of the course. Contact: +919632913911

Aditya Kalra is a corporate news editor at Reuters in India, overseeing business coverage and breaking stories on some of the world’s largest companies. He joined Reuters in 2008 and in recent years has written stories on challenges and strategies at a wide range of companies – from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance. He also works extensively on insightful and investigative business stories.