Byju’s may have to dip into Epic sale funds to keep lights on

economictimes.indiatimes.com:

Epic, to sustain operations at Think & Learn, multiple people aware of the matter said.

While Byju’s has received three bids so far for about $400 million for Epic, as per the current plans, the company would have to tap into at least $80-100 million from the transaction while keeping the remainder for term loan B (TLB) lenders.

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However, the critical factor remains the speed at which the deal is finalised, and the funds are transferred even as Byju’s simultaneously explores various avenues for securing much-needed financing. Joffre, a tech-focused buyout firm, is said to be the frontrunner.

Meanwhile, Byju’s also informed employees on Saturday that it is reducing the notice period for all its staffers from 15-60 days to 15-30 days, depending on seniority.
For Level 1 to 3, which includes executives, associates, specialists, senior executives, senior associates, senior specialists and team leads, the notice period would be 15 days, while the same for Level 4 and above would be 30 days. ET has seen a copy of the email sent by the company.

This latest move is also aimed at cutting costs. In September, the company’s newly-appointed India CEO Arjun Mohan started a restructuring that resulted in at least 4,500 job cuts. Currently, Think & Learn is estimated to have around 13,000-14,000 employees.


Byju’s is implementing multiple desperate measures to stay afloat at a time when the company is slated to hold its annual general meeting on December 20. ET