Discussions about a potential acquisition by Byju's of the American reading platform, Epic, are underway.
In a significant turn of events, Indian multinational educational technology and online tutoring firm Byju's has sold Epic, a US-based online reading platform, at a steep loss. Originally acquired for $500 million in July 2021, Byju's sold Epic in a Delaware bankruptcy auction in June 2025 for only $95 million.
This sale is part of Byju's broader financial distress. The company took a $1.2 billion term loan in late 2021, which precipitated its decline, leading to missed financial filings, insolvency proceedings, and forced asset sales including other US acquisitions like Tynker. Byju's insolvency is being actively contested in Indian courts, with appeals related to settlement offers being rejected by the Supreme Court of India in mid-2025.
Implications for Byju's
The massive loss on Epic's sale reflects the severe devaluation of Byju's US assets and signals significant financial troubles for the company. The liquidation of key international assets suggests Byju's is retreating from its aggressive overseas expansion strategy amid debt and operational challenges. Ongoing insolvency proceedings and legal battles in India indicate structural problems that may impact its future as a global edtech player.
Implications for Epic and the US Edtech Market
Under new ownership (after being sold in the bankruptcy auction), Epic will likely pursue a new strategic direction, possibly with more stability or fresh capital. The sale at a fraction of the acquisition price indicates a major correction in the valuation of US-based edtech startups that had been aggressively acquired by foreign companies like Byju's. This could trigger more cautious investment and acquisition behavior in the US edtech space going forward.
Despite the setback, Byju's is not giving up on its expansion plans. The funding it received is said to let the company fund its acquisitions in India and global markets, including the US. The latest funding round is expected to lift Byju's valuation to about $15 billion from $12 billion at present. Byju's is in talks to raise up to $700 million from new and existing investors in a fresh funding round.
One of Byju's upcoming acquisitions is exam preparation firm Aakash Educational Services, valued at $700-800 million. This acquisition, once closed, will be the biggest in the education space. Byju's was valued at $12 billion in November 2020 and is among India's most valuable private internet companies.
Epic, a US-based startup that offers unlimited access to over 40,000 books, videos, and quizzes to kids aged 12 or younger, collects and analyzes real-time anonymized and aggregated data to understand reading engagement and interests of kids. Over 1 million teachers across more than 90% of US elementary schools use Epic.
Byju's previously acquired US-based Osmo, which offers "blended learning" apps for kids aged five to 12, in 2019. The online tutoring firm was co-founded in 2011 by Byju Raveendran and Divya Gokulnath. Epic is backed by Evolution Media and has raised over $51 million to date. If the deal to acquire Epic goes through, Epic's offerings will align with Byju's current playbook in the US.
Technology's role in education-and-self-development is evident with Byju's acquisition of Epic, a US-based online reading platform, in 2021, but the subsequent sale at a loss in 2025 indicates challenges within the technology-driven edtech industry. Coding a successful future for these ventures may require careful considerations, as Byju's experiences financial troubles and adjusts its overseas expansion strategy.
