Byju’s Lenders Tap Kroll to Protect Great Learning & Singapore Entity Assets

Byju’s Lenders Tap Kroll to Protect Great Learning & Singapore Entity Assets

Byju’s, the world’s most valuable edtech startup, has been facing financial challenges in recent months. In an effort to protect the assets of its subsidiaries, Great Learning and Byju’s Singapore, Byju’s lenders have appointed risk advisory firm Kroll.

Kroll will be responsible for safeguarding the charged assets of Great Learning Pte Ltd and Byju’s Pte Ltd, which means that they will have control over the assets and will be able to sell them if necessary to repay Byju’s debt.

The appointment of Kroll is a sign that Byju’s lenders are becoming increasingly concerned about the company’s financial situation. Byju’s has been struggling to raise new funding, and its revenue growth has slowed down significantly.

The company has also been under pressure from investors to improve its corporate governance practices. In June, three of Byju’s non-promoter board members and its statutory auditor Deloitte resigned, citing the company’s failure to maintain governance standards as it grew in scale.

Byju’s has been trying to sell some of its assets to raise cash. In August, the company sold its US test prep business, Aakash Educational Services, to Blackstone for $950 million. Byju’s is also reportedly in talks to sell its children’s reading platform, Epic, for around $1 billion.

The appointment of Kroll is likely to make it more difficult for Byju’s to sell its assets. This is because Kroll will have to approve any sale, and they may be reluctant to sell if they believe that the company can still recover financially.

The appointment of Kroll is also a sign that Byju’s lenders are preparing for the possibility of a bankruptcy. If Byju’s is unable to repay its debt, Kroll will be responsible for liquidating the company’s assets and distributing the proceeds to the lenders.

Implications for Great Learning and Byju’s Singapore

The appointment of Kroll is likely to have a significant impact on Great Learning and Byju’s Singapore. Both companies are now under the control of Kroll, and Kroll will have the power to make decisions about their future.

It is possible that Kroll will decide to sell Great Learning and Byju’s Singapore. This would be a negative development for both companies, as it would mean that they would lose their independence.

However, it is also possible that Kroll will decide to keep Great Learning and Byju’s Singapore and help them to turn around their businesses. This would be a positive development for both companies, as it would give them a chance to recover and grow.

What’s next for Byju’s, Great Learning, and Byju’s Singapore?

It is difficult to say what the future holds for Byju’s, Great Learning, and Byju’s Singapore. The appointment of Kroll is a sign that the companies are facing significant challenges, but it is also a sign that the lenders are committed to helping them to recover.

The best outcome for all parties involved would be for Byju’s to be able to repay its debt and continue to operate independently. However, if Byju’s is unable to repay its debt, it is likely that the company will be sold or liquidated.

In the meantime, Great Learning and Byju’s Singapore will continue to operate under the control of Kroll. It is important for both companies to maintain their focus on their businesses and to continue to serve their students and customers.