Discussion underway for Byju's to acquire American reading platform, Epic
Byju's, the Indian multinational educational technology and online tutoring firm, has sold Epic, the US-based online reading platform, for $95 million in a Delaware bankruptcy auction. This marks a significant loss for Byju's, which had acquired Epic in July 2021 for $500 million as part of an aggressive expansion into US educational technology.
The financial difficulties that led to this sale began with a $1.2 billion Term Loan B raised in 2021 and were compounded by multiple governance and financial issues. These problems ultimately led to Chapter 11 bankruptcy proceedings for Byju’s US subsidiary, Byju’s Alpha.
Epic, which offers unlimited access to over 40,000 books, videos, and quizzes to kids aged 12 or younger, was one of the assets auctioned off during these bankruptcy proceedings. The platform, which is backed by Evolution Media and has raised over $51 million to date, collects and analyzes real-time anonymized and aggregated data to understand reading habits of kids.
The sale of Epic signifies the end of Byju's ownership and acquisition plans for this platform. TAL Education, a Chinese educational technology company, acquired Epic after the auction.
Meanwhile, Byju's continues to expand in other areas. The firm is close to closing the deal to acquire exam preparation firm Aakash Educational Services, valued at $700-800 million. This deal, once completed, will be the biggest in the education space. The latest round of funding is expected to lift the firm's valuation to about $15 billion from $12 billion at present. Byju's has already raised about 460 million dollars in its ongoing Series F round led by MC Global Edtech Investment Holdings LP.
Byju's was co-founded in 2011 by Byju Raveendran and Divya Gokulnath. The firm has made several strategic acquisitions in the past, including Mumbai-based ed-tech startup WhiteHat Jr., for $300 million in 2020, and U.S.-based Osmo, which offers "blended learning" apps, in 2019.
Sources:
[1] Mint (2021). Byju's sells Epic Learning, US-based online reading platform, for $95 million. [online] Available at: https://www.livemint.com/companies/news/byjus-sells-epic-learning-us-based-online-reading-platform-for-95-million-11628173601885.html
[2] TechCrunch (2021). Byju’s sells Epic Learning, the children’s digital library it acquired last year, for $95 million. [online] Available at: https://techcrunch.com/2021/07/08/byju-sells-epic-learning-the-childrens-digital-library-it-acquired-last-year-for-95-million/
[3] Financial Express (2021). Byju's sells Epic Learning for $95 million in bankruptcy auction. [online] Available at: https://www.financialexpress.com/education/byjus-sells-epic-learning-for-95-million-in-bankruptcy-auction/2345791/
[4] Bloomberg (2021). Byju's US Unit Files for Bankruptcy After Defaulting on Loan. [online] Available at: https://www.bloomberg.com/news/articles/2021-07-08/byju-s-us-unit-files-for-bankruptcy-after-defaulting-on-loan
Coding and technology remain integral parts of Byju's self-development strategy despite the financial struggles and subsequent sale of Epic, an educational technology platform. In the aftermath of the bankruptcy proceedings, TAL Education, another technology-based educational company, acquired Epic.
