Ranjan Pai’s family office settles Byju’s $174 million debt via distressed asset buy

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By Robert Fofana

Ranjan Pai’s family office settles Byju’s 4 million debt via distressed asset buy
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In a significant financial move, Ranjan Pai’s family office has settled a term loan for Byju’s by acquiring distressed debt in Aakash Education Services Ltd (AESL) on the NSE CBRICS platform. The transaction, valued at Rs 1,400 crore (approximately $174 million), comes amid Byju’s ongoing efforts to streamline its finances and meet repayment obligations.

Byju’s, the parent company of Think and Learn Private Limited, has been navigating a complex financial landscape following a share swap disagreement with the Chaudhry family and Blackstone Group (NYSE:). As part of its strategy to manage its debts, Byju’s is planning to divest two of its subsidiaries, Epic and Great Learning. The proposal indicates that these divestments are expected to generate close to a billion dollars, with Byju’s aiming to repay $300 million of its debt within the next three months.

Epic, an educational storytelling platform, is on the cusp of being sold to Joffre Capital Ltd for an estimated $400 million. In parallel, Ranjan Pai is negotiating a substantial investment of $300 million in Byju’s through his fund Aarin Capital, which was the first institutional investor in Byju’s. This investment is poised to give Pai a significant stake in Aakash.

In April 2021, Byju’s had acquired Aakash for $1 billion. However, amidst these financial maneuvers, a Delaware court has recently upheld lenders’ rights to control Byju’s Alpha in a legal dispute over a $1.2 billion loan. This ruling came after lenders issued a legal notice to Aakash.

The unfolding developments signal a period of restructuring for Byju’s as it seeks to solidify its financial position and continue its growth trajectory in the education technology sector.

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