Indian education company Byju’s is in advanced talks to sell its digital children’s reading platform Epic! The creations will be sold to private equity fund Joffre Capital for about $400 million. The company is looking for ways to ease its financial pressures, Bloomberg News reported on Monday, citing people familiar with the matter.
As Reuters reported in September (link), Byju’s is looking to raise up to $1 billion by selling two companies – Great Learning and Epic – to streamline its business and compensate lenders.
A potential sale of Epic would help Byju’s finance its controversial $1.2 billion loan, according to a Bloomberg report, which added that other suitors including Duolingo Ragdollwhich designs and develops mobile learning platforms, has also expressed interest in purchasing Epic.
Byju’s did not immediately respond to a Reuters request for comment, while Joffrey and Duolingo could not be immediately contacted because they are outside their working hours in the United States.
Moelis and Co. leads the way. Epic sale process, and the report indicates that the deal may close as soon as this month.
Byju’s, which is backed by investors including General Atlantic, Prosus and Silver Lake and valued at $22 billion last year, has suffered a series of setbacks, including the resignation of its auditor and board members. In recent months, the company also negotiated the repayment of a $1.2 billion loan.