Edtech Earthquake! UpGrad Makes Bold Move to Acquire Byju's Amidst Crisis! What's Next?

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

UpGrad, a prominent edtech company, has reportedly entered the race to acquire Think & Learn, the parent company of Byju's, which is presently navigating insolvency. Ronnie Screwvala, the founder of UpGrad, confirmed that the company has filed an Expression of Interest (EOI) for the acquisition. This development places UpGrad as the second known bidder, following an earlier bid from Manipal Group, led by Ranjan Pai. Manipal Group's interest is partially linked to its majority stake in Aakash Educational Services, where Think & Learn previously held a significant stake before a dilution occurred.

Screwvala clarified that UpGrad's focus is not on the K-12 sector but specifically on the higher education assets within Byju's business. He emphasized that UpGrad will adhere to the due process guided by EY, who have been appointed by regulators to oversee the insolvency proceedings.

Impact This potential acquisition could significantly alter the Indian edtech landscape. If successful, UpGrad would gain access to Byju's assets, potentially strengthening its market position. The process also highlights the ongoing struggles within the edtech sector and the aggressive moves being made by established players to consolidate and acquire distressed assets. Investors will be closely monitoring the bidding process and the final outcome, as it could set a precedent for future M&A activities in the sector. Rating: 7/10

Difficult Terms: * Edtech: Stands for Education Technology, referring to products and services that use technology to enhance learning. * Insolvency: A legal status of a person or organization that cannot repay their outstanding debts. It often involves a process where a company's assets are managed to pay off creditors. * Expression of Interest (EOI): A document submitted by a potential buyer indicating their serious intention to acquire a company or its assets, usually an initial step in a larger M&A process. * K-12: Refers to the primary and secondary education system, encompassing Kindergarten through 12th grade. * Dilution: In business, dilution occurs when a company issues new shares, which reduces the ownership percentage of existing shareholders.