Byju's Puts Great Learning, Epic On The Block To Generate $800 Million To $1 Billion For Loan Repayment

Byju's, the most valuable startup in India, is planning to generate approximately $1 billion by selling two of its major assets: upskilling platform Great Learning and California-based reading platform Epic.

This move is aimed at repaying the $1.2 billion term loan B within the next six months.

According to a report from moneycontrol, Byju's is expecting to raise around $400-550 million from the sale of Epic, which the company acquired for approximately $375 million in 2021.

This report also mentions that Byju's has already received three term sheets for Epic and negotiations for the deal are in advanced stages.

In addition to Epic, Byju's has also put Great Learning up for sale.

The company has had preliminary discussions with potential buyers and hopes to fetch around $400 million from the sale of the upskilling platform.

Byju's had acquired Great Learning for about $350 million in 2021.

However, the discussions for the sale of Great Learning are still in the early stages.

If Byju's successfully sells Great Learning and Epic, it will gain the necessary financial resources to address its upcoming liquidity challenge.

This includes repaying the full term loan B and continuing negotiations with Davidson Kempner, an asset management company based in the US.

In May, Davidson Kempner provided Byju's with $250 million in structured debt, which was based on the future cash flows of Aakash Educational Services, the company's largest asset.

However, approximately $150 million was withheld by the US-based AMC due to the lack of progress in Byju's negotiations with its lenders.

Byju's faced a technical default on the Davidson Kempner loan, leading Byju Raveendran to secure funds for repayment in order to prevent losing control of Aakash Educational Services, its most valuable asset.

Byju's had offered Aakash's shares as collateral for the Davidson Kempner loan.

The company is optimistic about repaying $300 million of the loan within the next three months, but this is contingent upon the lenders accepting its proposed amendment.