Latest news with #Tynker
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Business Standard
3 days ago
- Business
- Business Standard
Byju's offloads US assets at steep loss amid mounting financial crisis
Troubled ed-tech firm Byju's has been forced to sell two of its US-based assets, Epic and Tynker, at steep losses. A bankruptcy court in Delaware, US approved the distress sale, with Epic sold for $95 million and Tynker for just $2.2 million. Byju's had purchased Epic in 2021 for $500 million and Tynker for $200 million. Epic has now been acquired by China's TAL Education Group, while online learning platform CodeHS has taken over Tynker after a 48-round competitive auction, according to EdWeek Market Brief. Part of bankruptcy proceedings These sales are part of ongoing bankruptcy proceedings in the United States involving Byju's subsidiaries: Epic, Tynker, and Osmo. The sales aim to help recover part of a $1.2 billion term loan given to Byju's. The company defaulted on the loan over 17 months ago, prompting a series of legal disputes. All three US subsidiaries served as guarantors for the syndicated loan, which has now come under intense scrutiny. Expansion strategy backfires Byju's had bought the US platforms during the Covid-19 pandemic as part of an ambitious international expansion. However, this strategy, driven by debt, has now collapsed, putting the company in crisis. 'Byju's now worth zero': HSBC HSBC has valued global tech investor Prosus' nearly 10 per cent stake in Byju's at zero. Prosus had invested $500 million in the ed-tech company. In a note to investors on 21 May, HSBC said, 'We assign zero value to Byju's stake amid multiple legal cases and funding crunch.' History of Byju's troubles In February 2024, a group of shareholders, including Prosus, accused Byju's of 'financial mismanagement and compliance issues'. They demanded the removal of founder and CEO Byju Raveendran and a complete board overhaul. Auditing firm Deloitte also resigned, citing delays in receiving financial statements for the year ending March 2022. Deloitte said repeated requests to the board for required documents went unanswered. Critics and former auditors have kept raising concerns about corporate governance.
News18
3 days ago
- Business
- News18
Byju's Subsidiaries Sale: $700M Bet Shrinks To $97M As Epic, Tynker Sold At Heavy Loss
Byju Raveendran noted that the company expanded too fast in over 21 countries, driven by the pressure from investors. Byju's originally purchased Tynker in 2021 for around $200 million and Epic for about $500 million the same year. The significantly lower sale prices reflect the steep devaluation of the company's global portfolio. EdWeek Market Brief reported that Tynker's sale resulted from 48 rounds of competitive bidding between CodeHS, operating through a new entity named Tynker Holdings, and another bidder, Future Minds. Jeremy Keeshin, the CEO of CodeHS and the sole member of Tynker Holdings, stated that this acquisition would enable CodeHS to support learners from basic coding to advanced computer science. Department Of Justice Intervention Epic's sale encountered a last-minute intervention from the US Department of Justice, which highlighted the potential need for a review by the Committee on Foreign Investment in the United States (CFIUS) due to the Chinese ownership of the buyer. Judge Shannon described the event as a 'fire drill," but the sale ultimately proceeded. Byju Raveendran Accepts His Big Mistake Byju's founder Byju Raveendran earlier acknowledged that a significant mistake the company made was opting for a $1.2 billion term loan in 2021, despite having adequate equity funding options. He also noted that the company expanded too fast in over 21 countries, driven by the pressure from investors. In an interview with ANI, Raveendran explained that the decision, made collectively with board members including investor and founder directors, was not a result of desperation, as the company had previously raised $5 billion. About the Author First Published: June 11, 2025, 09:10 IST
Time of India
3 days ago
- Business
- Time of India
Byju's sells US-based arms at steep discount
Bengaluru: Byju's has sold its US-based subsidiaries, Epic and Tynker, as part of US bankruptcy proceedings, in what appears to be a fire sale. This marks the latest step in the Indian edtech company's asset liquidation following its financial collapse. Tired of too many ads? go ad free now Epic was acquired for $95 million by the Chinese education firm TAL Education Group, while CodeHS purchased Tynker for $2.2 million in cash, according to court filings. Both transactions were approved by US Bankruptcy Judge Brendan Shannon on May 20 and are intended to help lenders recoup losses from a $1.2 billion term loan extended to Byju's. Tynker was acquired by Byju's in 2021 for a reported $200 million, while Epic was bought the same year for about $500 million. The latest sale values underscore the sharp write-downs now facing the company's global portfolio. According to a report by EdWeek Market Brief, Tynker's latest sale followed 48 rounds of competitive bidding between CodeHS, operating through a newly formed entity called Tynker Holdings, and another party, Future Minds. CodeHS CEO Jeremy Keeshin, identified in court as the sole member of Tynker Holdings, said the acquisition would allow the company to support learners as they progress from basic coding tools to advanced computer science content. Epic's sale faced an eleventh-hour intervention from the US Department of Justice, which flagged the potential need for a CFIUS (Committee on Foreign Investment in the United States) review due to the buyer's Chinese ownership, court records show. Judge Shannon described the episode as a "fire drill," though the transaction ultimately received approval. Both sales are being overseen by a court-appointed trustee managing the asset disposal on behalf of creditors. Tired of too many ads? go ad free now Byju's, once valued at $22 billion, is now facing insolvency proceedings in India over non-payment of dues, while its international operations are being dismantled through US bankruptcy court. TOI previously reported that the asset sales form part of a larger restructuring effort as Byju's attempts to navigate legal, regulatory, and financial pressures following its aggressive global acquisition spree. Other subsidiaries, such as Aakash, remain under scrutiny amid separate legal proceedings.
Time of India
3 days ago
- Business
- Time of India
Byju's sells US subsidiaries at steep discount
BENGALURU: Byju's has sold its US-based subsidiaries, Epic and Tynker, as part of US bankruptcy proceedings, in what appears to be a fire sale. This marks the latest step in the Indian edtech company's asset liquidation following its financial collapse. Epic was acquired for $95 million by the Chinese education firm TAL Education Group, while CodeHS purchased Tynker for $2.2 million in cash, according to court filings. Both transactions were approved by US Bankruptcy Judge Brendan Shannon on May 20 and are intended to help lenders recoup losses from a $1.2 billion term loan extended to Byju's. Tynker was acquired by Byju's in 2021 for a reported $200 million, while Epic was bought the same year for about $500 million. The latest sale values underscore the sharp write-downs now facing the company's global portfolio. According to a report by EdWeek Market Brief, Tynker's latest sale followed 48 rounds of competitive bidding between CodeHS, operating through a newly formed entity called Tynker Holdings, and another party, Future Minds. CodeHS CEO Jeremy Keeshin, identified in court as the sole member of Tynker Holdings, said the acquisition would allow the company to support learners as they progress from basic coding tools to advanced computer science content. Epic's sale faced an eleventh-hour intervention from the US Department of Justice, which flagged the potential need for a CFIUS (Committee on Foreign Investment in the United States) review due to the buyer's Chinese ownership, court records show. Judge Shannon described the episode as a 'fire drill,' though the transaction ultimately received approval. Both sales are being overseen by a court-appointed trustee managing the asset disposal on behalf of creditors. Byju's, once valued at $22 billion, is now facing insolvency proceedings in India over non-payment of dues, while its international operations are being dismantled through US bankruptcy court. TOI previously reported that the asset sales form part of a larger restructuring effort as Byju's attempts to navigate legal, regulatory, and financial pressures following its aggressive global acquisition spree. Other subsidiaries, such as Aakash, remain under scrutiny amid separate legal proceedings. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
4 days ago
- Business
- Time of India
Byju's American assets Epic and Tynker sold for a song
Live Events Two American assets of troubled edtech company Byju's, coding platform Tynker and kids learning platform Epic , have been sold for a fraction of what the company paid for them.A US bankruptcy court approved both the sales during a hearing on May 20, as per a report by EdWeek Market science education company CodeHS has acquired Tynker for $2.2 million in cash, a significant drop from the $200 million that Byju's paid in a cash-and-stock deal to acquire it in which was acquired by Byju's in 2022 through a $500-million cash-and-stock transaction, has been sold to China's TAL Education Group for $95 sent to Byju's are yet to elicit a was Byju's second-biggest buyout after coaching centre operator Aakash Institute, which it acquired in 2021 for nearly $1 June 2024, ET had reported that some lenders within a consortium that loaned $1.2 billion to Byju's had said that they had filed a petition in a US court to initiate bankruptcy proceedings against the company's subsidiaries Epic, Tynker and April 10, the lenders filed a lawsuit in the US against Raveendran, his wife Divya Gokulnath and former company executive Anita Kishore. The lawsuit alleged that the three of them planned and executed a scheme to hide and misappropriate $533 million from the money they had lent to Byju's Alpha, a special purpose financing vehicle the edtech company had established in the US to receive the to this, a Delaware Bankruptcy Court ruling indicated that multiple fraudulent transfers and theft had taken place. According to the lenders, the court also found that suspended director Riju Ravindran had violated his fiduciary responsibilities as a director of the US entity, Byju's Alpha India, both the brothers have moved the NCLT and NCLAT seeking a stay on the committee of creditors (CoC) and the removal of the resolution professional. This move comes after the resolution professional for Think & Learn began steps to withdraw certain legal proceedings in a New York court. Separately, concerns have also been raised over the ongoing sale of the company's & Learn, represented by the RP, has also alleged that its shareholding in Aakash is getting diluted after the coaching centre operator amended its articles of association (AoA) to remove the reserved rights of minority investors by enforcing the resolutions passed at an extraordinary general meeting (EGM) last November.
