New Delhi, Ed-tech titan <keyword id="3320944" type="General" weightage="20" keywordseo="Byjus" source="Orion">Byjus</keyword> is looking to sell its overseas ventures Epic and Great Learning to pay back its entire USD 1.2 billion (Rs 9,956 crore) loan to lenders, a source familiar with the matter said. The ed-tech decacorn has been in discussions with the lenders and has made a proposal to clear its Term B loan, the source said. Byju's hopes to garner between USD 800 million to USD 1 billion from the sale of Epic, the US-based kids learning firm, and Great Learning - the upskilling platform. The firm is also working on raising fresh capital from equity sales, and is working with bankers for the sale of the aforementioned key assets to strategic investors -- which has also garnered interest, the source said. An email sent to the ed-tech platform for comments remained unanswered. India's most-valued startup is hoping to repay the entire USD 1.2 billion term loan B (TLB) in under six months. Of this, it is proposing to repay USD 300 million in the next three months. Lenders have not yet responded to the proposal. Byju's in November 2021 raised USD 1.2 billion in debt through a term loan facility (TLB) from a group of overseas investors. A TLB is a type of senior secured syndicated credit facility that is issued by global institutional investors. Typically, the proceeds from a TLB are used to either refinance an existing debt or to make overseas acquisitions in order to enhance a company's offerings. Byju's had acquired Aakash USD 950 million in 2021. In July this year, the steering committee of ad hoc term loan lenders is reported to have agreed to amend the USD 1.2 billion term loan. The development comes after the company formed an advisory council with ex-Infosys CFO Mohandas Pai and Bharatpe Chairman and former SBI chief Rajnish Kumar after the exit of investors G V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative and Russell Dreisenstock of Prosus. Byjus had acquired Epic in a USD 500 million cash-and-stock deal in May 2022.

Byjus proposes sale of overseas units to repay $ 1.2 billion loan

<ul><li>The Bengaluru-based edtech startup says that the capital invested in its business will result in profitability.</li><li>The edtech giant is targeting profitability by March 2023.</li><li>It has put together a plan to reduce its marketing and operating costs in order to turn in a profit.</li></ul>Indian edtech decacorn BYJU'S on Monday announced a new fundraise of $250 million from its existing investors. The Bengaluru-based startup says that the capital invested in its business will result in profitability. It’s currently a loss-making company. “BYJU’S is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favour. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact,” said Byju Raveendran, founder and CEO of BYJU’S. The edtech giant is targeting profitability by March 2023. It has put together a plan to reduce its marketing and operating costs in order to turn in a profit. As a result, 5% of its workforce, or roughly 2,500 workers, will be let go in the following six months, it announced last week. This move, the company said, is a way to avoid redundancies in job roles. As per the audited FY21 financials that it released last month after an 18-month delay, its losses widened by 20 times to ₹4,589 crore. The company however says that FY23 will be the best year for its financial growth. “Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability,” said Raveendran. Further, the BYJU’s says that it has embarked on a path to achieve group-level profitability by March 2023 with a three-pronged approach. One is by consolidating all its K10 India subsidiaries, retargeting marketing budget towards its overseas markets and lastly increasing the strength of its inside sales team. The other companies it has acquired – Aakash Education and Great Learning, which are respectively into test-prep and upskilling, will continue to operate as stand-alone independent units. Today, there are more than 250 active BYJU’S tuition centres across India and the company aims to scale it up to 500 centres by the end of this financial year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tracxn-technologies-ipo-heres-how-you-can-check-the-allotment-status/articleshow/94915149.cms">Tracxn Technologies IPO: Here’s how you can check the allotment status</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/avenue-supermarts-shares-fall-after-the-retail-chain-reports-a-decline-in-margins-in-q2/articleshow/94912781.cms">DMart shares fall over margin decline and slow recovery in footfalls</a>

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Byjus proposes sale of overseas units to repay $ 1.2 billion loan

PTI

Edtech decacorn Byju’s raises $250 million from existing investors

Bhakti Makwana