Byju is buying Out Aakash Educational Services at $1 billion
In the next two to three months, the deal for which is one of the biggest Ed-tech acquisitions in the world should be closed, the person who did not want to be named as the information is private.
India’s largest online training company Byju has signed an agreement to acquire brick-and-mortar test preparation leader Aakash Educational Services Ltd. for $1 billion, an informed speaker says.
In the next two to three months, the deal for which would be one of the world’s largest edtech acquisitions should close, said the person who did not want to be recognized as the details private.
The Bangalore-owned Byju’s is estimated at $12 billion and has been in the sphere of fundraising as the pandemic has soaring demand for its online lessons. India’s second most valuable startup is funded by Tiger global management and Bond Capital, co-founded by Silicon Valley investor Mary Meeker, founder of the Facebook initiative, the Chan Zuckerberg Initiative, and Mark Zuckerberg.
A Byju’s spokeswoman refused to comment, while emails and calls to Aakash Educational Services in New Delhi and its CEO Aakash Chaudhry did not respond.
Aakash Education Services, funded by Blackstone Company, operates the Aakash Institute, which has more than 200 brick and mortar centers and tutors for students in the country’s prestigious engineering and medical colleges. According to its website, its student count is over 250,000.
Whereas online learning startups have prospered, off-line tutoring centers, since March last year, have been seriously affected by the pandemic.
In the deal with Byju, Aakash’s founders, the Chaudhry family, will leave Aakash entirely, while Blackstone will exchange a 37.5% share of its Aakash equity for Byju, the individual said.
Byju’s was created by the former teacher and educator Byju Raveendran, who developed the 2011 smartphone app. The app provides children from kindergarten to grade 12 with over 5 million users a month. India has approximately 250 million K-12 students. The app teaches mathematics and science through video animations and games.
In September last year, Byju announced a fundraising, more than 70 million users logged in from over 1.700 cities across the country. Over 4.5 million of these are paying users. It aims to double its sales in the present financial year ending in March 2021 to $1 billion.