Ed-tech platform Byju’s is in advanced stage of talks to sell its California-based reading platform, Epic for around $400 million to Joffre Capital. Sources in the know of developments said that the company is also in talks with mobile learning platform, Duolingo and a couple of other players.
The sale process is being managed by Moelis & Co and the deal is likely to be finalised within this month.
Byju’s had acquired Epic for $500 million in 2021 as part of its global expansion.
The company is also considering sale of its upskilling platform, Great Learning from which it expects to raise another $400 million. Byju’s needs to raise around $800 million to $1 billion to repay the $1.2 billion term loan B, industry sources said. The company is also in talks with Abu Dhabi Investment Authority to raise fresh capital.
Osmo, a US-based startup which develops apps for kids using offline input, which was acquired by Byju’s in a deal worth $120 million, in January 2019, is also being considered as an option for sale.
Byju’s has been looking to raise around $1-1.5 billion since February this year and has held discussions with Middle East-based sovereign wealth funds.
Byju’s, Moelis, Joffre and Duolingo did not respond to requests for comments.
On November 4, after a delay of around 19 months Byju’s announced its partial earnings for FY22, which included its core business, meaning that the same did not include Aakash Educational Services, WhitehatJr and other acquisitions.
On a standalone basis, the company narrowed its operational losses to Rs 2,253 crore from Rs 2,406 crore in the previous fiscal. Revenue increased 2.3 times to Rs 3,569 crore. The company said that it will file the consolidated numbers with the ministry of corporate affairs (MCA) in three weeks’ time.
