Edtech startup Byju announces its plan to acquire Aakash Educational Service. Byju is reportedly ready to go big with the acquisition. Both parties expect to finish the deal in two to three months.
Byju prepares $1 billion to acquire Aakash
A report from earlier today mentioned that Byju will pay $1 billion for the acquisition of Aakash Educational Services. An informant told Livemint that Blackstone will likely swap a part of its 37.5% equity bought back in 2019 for Byju’s stake. On the other hand, Aakash’s founders, the Chaudry family, will withdraw completely. Despite all the information circulating, Byju still refuses to give comment for the moment.
Aakash Educational Service itself owns and operates over 200 physical tutor centres in India. The registered students are mainly preparing themselves for top engineering and medical colleges. However, the pandemic has force shut offline classes. Schools and tutoring centres have been closed since March last year. Accordingly, Tech Crunch noted that Byju recently recorded over 250,000 students under its platform. In 2020 alone, Byju managed to attract tens of millions of students to register to the platform.
More about Byju
Byju is currently one of the most sought after edtech firms in India. The company was able to gain profit late in 2019 after it was first founded in 2011. In the past two years, the company managed to raise over $800 million. The valuation has since skyrocketed to over $11 billion. With high-profile investors like Bond behind the company, expectations on Byju also grow higher. Bond itself hopes that Byju’s worth could exceed $30 billion within three years, according to Tech Crunch‘s informant.