upGrad, led by Ronnie Screwvala, has officially submitted an Expression of Interest (EOI) to acquire assets of the bankrupt parent company of BYJU’S, Think & Learn Pvt Ltd (TLPL)
- According to reports, upGrad’s interest is primarily in the higher-education and upskilling business segments such as Great Learning, rather than the K-12 business which is the core of BYJU’S.
- upGrad is entering the fray alongside other bidder(s) such as Manipal Education & Medical Group (MEMG) which has also submitted an EOI for TLPL.
- The deadline for filing EOIs has been extended to December 15, giving more time for potential bidders.
Why This Matters
1. Strategic Sector Move
upGrad’s bid signals a strengthening of consolidation in the Indian edtech space: firms focusing on higher-education and professional skilling are stepping in to acquire assets from one of the largest K-12-centric players.
2. Asset Value & Selective Acquisition
By targeting specific assets (like Great Learning) rather than the entire business, upGrad is avoiding K-12 complexities and liabilities, focusing instead on a business line aligned with its current model. This may reduce risk and offer higher synergy.
3. Implications for BYJU’S & TLPL
For BYJU’S parent company, the asset sale or restructuring via insolvency is critical: this process could reshape how the business is divested, revived or re-organized. For creditors and stakeholders it sets precedent.
4. Impact on the Market
The entry of such bidders may accelerate the timeline for resolution of BIS (bankruptcy/insolvency) proceedings in the edtech sector, lead to multiple-asset disposal (vertical breaks) and influence how other struggling edtech firms approach restructuring.
5. Competitive Landscape
With players like upGrad and Manipal making bids, the balance of power in Indian edtech could shift. Larger, profitable, or growth-oriented platforms may absorb troubled players or assets, tightening competition.
Background Context
- BYJU’S, founded in 2011 by Byju Raveendran and others, became India’s and the world’s one of the most-valued edtech firms, expanding across K-12, test-prep, higher-ed and upskilling.
- Think & Learn (BYJU’S parent) entered financial distress and insolvency proceedings after failing to meet debt obligations and other governance issues.
- upGrad, founded in 2015 with focus on higher education and upskilling, has been on a growth and acquisition path, and is now aiming to broaden its footprint by acquiring assets from distressed players.
Key Considerations & Challenges
- Due-diligence & liabilities: Any bidder will need to carefully assess existing liabilities, regulatory issues, asset authenticity and ownership disputes in TLPL’s portfolio.
- Regulatory and insolvency approval: The resolution process will require approval from the Resolution Professional, Committee of Creditors (CoC) and possibly regulatory authorities. upGrad’s EOI is just the first step.
- Integration risk: Acquiring and integrating the assets of a large firm like BYJU’S (even if specific segments) poses execution risk: culture, technology platform, market position all need harmonisation.
- Valuation & competition: Because many bidders are lining up, competition may push valuations up, or force buyers to take on unwanted segments or liabilities.
- Long-term strategy fit: While upGrad is focused on higher education/upskilling, the acquired assets must align with its growth strategy and not divert attention or resources.
What to Watch Next
- Which bidder(s) will be shortlisted and allowed to submit full resolution plans.
- Whether the resolution plan involves a full acquisition of TLPL or a carve-out of specific business units (e.g., higher-ed, K-12, test-prep).
- How the purchase price, investor funding and debt obligations will be handled in the transaction.
- How the major stakeholders (creditors, investors, regulatory bodies) respond to bids and structure of the deal.
- The reaction of competitors in edtech: will this prompt more consolidation, M&A, or exits in the sector?
Conclusion
upGrad’s entry into the bidding race for BYJU’S parent marks a key moment in India’s edtech industry. It signals that the era of distressed high-growth edtech firms is transitioning into one of consolidation, strategic acquisitions and selective asset purchases. For upGrad, the move could accelerate its ascent—but success will depend on execution, regulatory clearance and strategic fit. For BYJU’S parent and its creditors, this could be the beginning of a landmark restructuring.
