Byju’s Shocking Debt Payoff Plan: Billion-Dollar Fire Sale Unveiled!

Byju’s, the prominent Indian educational technology company, is strategically addressing its recent financial challenges and a substantial debt burden that has persisted for several months. Led by Byju Raveendran, the company, valued at over $10 billion, is pursuing a plan to divest two foreign acquisitions, which together amount to approximately INR 8,195 crore. The goal is to repay its entire $1.2 billion (INR 9,956 crore) loan to US-based lenders, according to the latest reports from sources familiar with the situation.

Previously, Byju’s had acquired Epic, a digital reading platform tailored for children, for an impressive $500 million (approximately INR 3,729.8 crore), and the upskilling platform, Great Learning, for $600 million (around INR 4,466 crore). The company is actively seeking to generate between $800 million and $1 billion through the sale of both Epic and Great Learning.

Sources indicate that Byju’s has presented this unexpected proposal for loan repayment to its lenders and is currently engaged in negotiations with them. Concurrently, Byju’s is exploring avenues to secure fresh capital through equity sales. The company is collaborating with financial institutions to sell these two crucial assets to strategic investors. As of the present moment, Byju’s has not issued an official response to the media reports regarding these developments.

For context, Byju’s had secured a $1.2 billion term loan facility (TLB) from a consortium of international investors in November 2021. TLBs are a form of secured syndicated credit facility frequently employed for debt refinancing or to facilitate overseas acquisitions aimed at expanding a company’s offerings.

It is reported that Byju’s is committed to repaying the entire $1.2 billion TLB within a six-month timeframe. As part of its proposed plan, the company is willing to allocate $300 million within the next three months. The response from Byju’s lenders regarding this proposal is currently pending.

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