BYJU’S sells US subsidiaries—Tynker and Epic!—for prices that barely scratch the surface of their original value. This isn’t a graceful retreat but a fire sale born out of desperation, triggered by bankruptcy proceedings gripping its US arm, BYJU’S Alpha. The staggering default on a colossal $1.2 billion loan left the company gasping for options.
The aftermath? Tynker, which BYJU’S snapped up for a jaw-dropping $200 million just four years ago, fetched a mere $2.2 million—an almost total annihilation of value. Epic!, the beloved children’s reading app, wasn’t spared either, selling at a paltry $95 million, slashed by over 80% from its $500 million price tag. This whole saga was sanctioned by a US bankruptcy court in May 2025 and serves as a brutal wake-up call about the perils of unchecked expansion.
Contrast this with the heady days between 2017 and 2021 when BYJU’S poured nearly $3 billion into 17 acquisitions, dreaming of edtech world domination. To complicate matters, allegations of fraudulent fund transfers exceeding half a billion dollars have surfaced, alongside mounting insolvency pressures back home in India. The BYJU’S meltdown isn’t just corporate drama; it’s a stark lesson for the entire edtech industry. Here’s a deep dive into the players, the fallout, and the broader ramifications for BYJU’S and the global edtech landscape.
1. Introduction to BYJU’S and Its US Subsidiaries
1.1 Overview of BYJU’S Business Model
BYJU’S began as Byju Raveendran’s brainchild in 2011, a venture fueled by a vision to disrupt education through tech wizardry. What set BYJU’S apart wasn’t just flashy videos or quizzes—it was the razor-sharp use of data analytics and adaptive algorithms that turned passive learners into engaged ones. The subscription model hooked millions across India and beyond, hungry for a personalized, interactive learning journey tailored by smart tech. The formula seemed foolproof—until it wasn’t.
1.2 US Expansion and Acquisition Strategy
Between 2017 and 2021, BYJU’S went on a buying frenzy that could be described as audacious or reckless—maybe both. Seventeen companies later, with a whopping $3 billion spent, BYJU’S was trying to stake its claim as the global edtech kingpin. Tynker and Epic! were the crown jewels of this portfolio, handpicked to fill glaring gaps in the US market’s educational tech offerings. Coding education? Check. Digital reading? Check. But, as the fallout reveals, the high-stakes gamble didn’t pay off.
2. The Startups: Tynker and Epic!
2.1 Tynker: Empowering Coding Skills for K-12 Students
Tynker, launched in 2012 by Krishna Vedati, Srinivas Mandyam, and Kelvin Chong, was more than a platform—it was a hands-on playground for young coders to craft games, animations, even smart gadgets. It tackled the persistent shortage of early coding education head-on, carving a niche through subscriptions targeting schools and individuals alike. It’s hard to overstate how much the demand for STEM skills fueled Tynker’s rise.
2.2 Epic!: The Digital Reading Platform for Kids
Epic! sprang to life in 2013, thanks to Suren Markosian and Kevin Donahue, with a straightforward yet ambitious mission: wrest children’s attention away from distractions and coax them into the habit of reading. Thousands of books, quizzes, and videos were packed into a digital library that appealed to families and schools alike. Its subscription-based approach was a lifeline in a world where kids’ focus is constantly under siege.
3. Bankruptcy and Fire Sale: The Backstory
3.1 BYJU’S US Bankruptcy Proceedings
At the heart of this drama is BYJU’S Alpha’s inability to repay a gargantuan $1.2 billion loan backed by a sprawling network of 37 lenders. As revenues dwindled and losses ballooned, tensions erupted into court battles. And just when things couldn’t get worse, allegations emerged that $533 million were fraudulently funneled to the Camshaft Fund, muddying the already turbulent waters. The bankruptcy court’s verdict in early 2025 sounded the death knell: assets must be liquidated—including those flagship US subsidiaries.
3.2 Details of the Asset Sales
The May 2025 court decision finalized the fire sale. Tynker went to CodeHS for a staggering 99% markdown—$2.2 million versus the original $200 million price tag. Epic! fetched $95 million from TAL Education Group, a steep drop from its initial $500 million valuation. In total, BYJU’S recouped just over $97 million from these two, a mere shadow of the $700 million sunk in. This wasn’t a strategic exit; it was an epic implosion.
4. Industry Trends and Competitive Landscape
4.1 The Global Edtech Market Growth
Edtech’s sky-high growth trajectory—propelled by digitization and the pandemic’s forced shift online—predicts a market ballooning past $400 billion by 2027 at a blistering 20% CAGR. But the glitter masks a brutal truth: the space is fiercely competitive, fragmented, and unforgiving. Many startups bleed cash, struggling to survive investor scrutiny and ever-tightening margins.
4.2 Competitors of BYJU’S, Tynker, and Epic!
Tynker faces tough rivals like CodeHS, Scratch, and Codecademy—all battling to captivate the coding-curious youth. Epic! locks horns with the likes of Scholastic, Raz-Kids, and Amazon’s Kindle Kids Edition. Meanwhile, BYJU’S jostles with heavyweights such as Khan Academy, Coursera, and Unacademy, all competing for eyeballs and wallets through varying blends of free and paid access.
5. The Founders’ Journey and Company Background
5.1 BYJU Raveendran and BYJU’S Growth Story
Byju Raveendran’s journey from a modest coaching setup to helming a $22 billion tech unicorn reads like a startup fairy tale. Riding India’s exploding internet access and education hunger, BYJU’S grew at breakneck speed. But the aggressive spree of acquisitions—part ambition, part panic—hinted at cracks beneath the surface.
5.2 Founders of Tynker and Epic!
The masterminds behind Tynker and Epic! were visionaries committed to democratizing coding and literacy. Both secured hefty venture capital rounds before BYJU’S swept them into its expansive portfolio, betting big on the promise of global edtech supremacy.
6. Challenges Faced by BYJU’S and Implications
6.1 Financial Struggles and Legal Battles
The unrelenting buying spree drained cash reserves and ballooned debt, exposing governance weaknesses and shaky financial management. Loan defaults and legal wrangling spotlighted cracks in BYJU’S armor, while fraud allegations dealt blows to credibility. Meanwhile, insolvency processes in India add layers of complexity to what’s already a steep climb.
6.2 Impact on the US Edtech Market
BYJU’S fire sale sent ripples through the US edtech sphere. While CodeHS and TAL Education Group snapped up valuable assets for pennies, BYJU’S withdrawal underscores a cautionary tale: global expansion without a firm financial footing is a fool’s errand.
7. Learning for Startups and Entrepreneurs
This BYJU’S saga isn’t merely news—it’s a stark masterclass in the dangers of reckless scaling. Growth without discipline is a house of cards. Over-leverage kills when markets turn sour. Investor and creditor trust isn’t optional—it’s survival. Entrepreneurs must focus on core strengths, avoid shiny distractions, and navigate international ventures with meticulous risk assessment.
Conclusion
BYJU’S fire sale of its US subsidiaries delivers a brutal lesson: no amount of ambition can mask the dangers of financial mismanagement. The collapse of Tynker and Epic! from prized assets to bargain-bin sales reveals the harsh reality for startups chasing rapid growth without a safety net. As BYJU’S struggles to reset, the takeaway couldn’t be clearer—transparency, strategic focus, and sustainable growth aren’t negotiable if you want to play in the global arena.
The Startups News
TheStartupsNews.com stays relentlessly attuned to seismic shifts shaking the startup realm—acquisitions, bankruptcies, market pivots. BYJU’S US divestitures offer a sobering reminder: sustainable business models and sound financial stewardship aren’t just buzzwords—they’re lifelines.
