BYJU'S eyes $1 billion from non-core asset sales
India's most-valued start-up, BYJU'S, is conducting a strategic review of its assets to put on sale non-core subsidiaries and refocus on core, profitable segments, per Moneycontrol. The company aims to earn about $1 billion from the sale of its upskilling platform Great Learning as well as its reading website Epic, while strengthening its business in India and retaining select overseas assets.
Refocusing on K-12 education and test prep
BYJU'S plans to concentrate its focus on K-12 education, exam preparation, offline coaching for K-12, and profitable niches pertaining to these segments. The company is keen on improving K-12-related verticals, including code learning platforms such as WhiteHat Jr and Tynker. This strategic review coincides with the firm's urgent need to strengthen its financial position amid immediate liquidity challenges.
Accelerated repayment plan for $1.2 billion loan
BYJU'S is planning to repay the entire $1.2 billion term loan B, which it acquired back in November 2021, within the next six months. The company has already handed over a proposed amendment to its lenders, outlining its plan to repay the full loan amount. Additionally, it pledged to pay $300 million within the next three months, subject to the lenders' acceptance of the proposal.
Fundraising challenges prompt strategic review
BYJU'S has been attempting to raise new funds since the start of 2023. However, it has not managed to close the round yet. This has prompted the firm to explore other plans for shoring up its finances. By conducting a strategic review and selling non-core subsidiaries, it hopes to generate significant revenue. To recall, the company reached its zenith in March 2022, when it raised $800 million at a $22 billion valuation. This made it the country's most valuable start-up.
