Major write-downs on US acquisitions
- Byju’s has sold its US-based coding platform Tynker to CodeHS for just $2.2 million, a fraction of its 2021 purchase price (~$200 million)
- Its children’s reading app Epic was sold to TAL Education for $95 million, down from the original acquisition cost of $500 million
Bankruptcy proceedings and US court approvals
- These distress sales were sanctioned by a US Bankruptcy Court on May 20, under Chapter 11 proceedings, to address Byju’s defaults on a $1.2 billion term loan
- The involuntary bankruptcy petitions targeted subsidiaries including Epic, Tynker, and Osmo
Strategic refocus on core business
- Byju’s is reviewing its entire asset portfolio—domestic and international—and prioritising core, profitable segments like K‑12 education and test prep
- Former subsidiaries like Great Learning and Aakash are distancing themselves and operating independently
Financial distress and fallout
- The company’s valuation has cratered from over $22 billion to under $1 billion, reflecting its aggressive acquisition-driven debt buildup
- Legal cases in India (NCLT) and the US (liquidation of US units) add to existing controversies over aggressive sales tactics and delayed financial reporting
Founder reboots with “Byju’s 3.0”
- Byju Raveendran recently appeared on a video podcast to unveil “Byju’s 3.0,” touted as an AI-enabled relaunch—though with limited clarity on execution and funding
Lessons for startups and investors
- This episode underscores the risks of high‑valuation, debt-fueled expansion and insufficient governance.
- It highlights the importance of financial discipline and robust oversight—even for once-vaunted unicorns.