Great Learning Education and Byju’s Alpha, two troubled edtech companies, have taken steps to safeguard their assets by appointing two senior executives from risk and financial advisory firm Kroll. The move comes as the secured creditors of Byju’s Alpha exercise their security rights following the company’s defaults. Cosimo Borrelli, Kroll’s global co-head of restructuring, and Jason Kardachi, its Singapore and Southeast Asia lead, have been tasked with protecting and preserving the charged assets of Great Learning and Byju’s.
The appointment of Kroll executives aims to ensure the continuity of operations for Great Learning and its subsidiary, Northwest Education. This development is significant as Byju’s seeks to generate $800 million to $1 billion by selling assets like Epic and Great Learning in order to repay its controversial $1.2 billion term loan B. Great Learning was acquired by Byju’s last year in a deal worth $600 million.
The decision to bring in Kroll executives reflects the ongoing challenges faced by both Byju’s and Great Learning. Byju’s Alpha, in particular, is under pressure to settle its substantial loan, and the appointment of experts from Kroll demonstrates a proactive approach to safeguarding assets and addressing the company’s financial issues.
In related news, Tata Consultancy Services (TCS), a prominent Indian IT services company, has reported a 9% year-on-year growth in its consolidated net profit for the quarter ended September. TCS recorded a consolidated revenue growth of nearly 8% compared to the previous year. The company’s operating margin also improved, indicating positive financial performance during the quarter. TCS has recommended the payment of a second interim dividend and has approved a share buyback.
Additionally, the Indian government has collected Rs 600 crore in tax deducted at source (TDS) from eGaming companies and Rs 105 crore from cryptocurrency exchanges this fiscal year. The Central Board of Direct Taxes (CBDT) chairman, Nitin Gupta, announced the figures and highlighted the efforts to simplify tax rules and enhance compliance. The introduction of TDS for online gaming companies aims to address the issue of tax evasion and ensure fair taxation in the sector.
In the media industry, private equity firm Blackstone is reportedly in discussions with The Walt Disney Company regarding a potential acquisition of Disney’s India streaming and television business. Meetings between senior executives from both companies have taken place, with Blackstone considering the purchase of the entire portfolio or specific assets, including sports properties, media rights, and the Disney+ Hotstar streaming service. Former Disney executives Kevin Mayer and Tom Staggs are believed to have played significant roles in bringing Blackstone to the negotiating table.
Finally, while Google has achieved success in the Japanese smartphone market, experts suggest that replicating that success in India may be challenging. Despite the premiumization trend in the Indian smartphone market, Google’s new Pixel smartphones may struggle to compete with Apple and other established brands. The launch of the Google Pixel 8 series in India aims to target consumers who are considering the latest iPhone models.
In conclusion, the appointment of Kroll executives to protect the assets of Byju’s Alpha and Great Learning reflects the ongoing challenges faced by these edtech companies. TCS has reported positive financial performance for the quarter, while the Indian government has collected significant tax amounts from eGaming companies and cryptocurrency exchanges. Blackstone’s discussions with Disney regarding a potential acquisition and Google’s efforts to establish a presence in the Indian smartphone market are also notable developments.
