Edtech Giant BYJU’S in Negotiations with Private Equity Firms for Aakash Sale
Three points you will get to know in this article:
- BYJU’S is reportedly in talks to sell Aakash Educational Services Limited to PE firms such as Bain Capital and KKR.
- The sale of Aakash would provide BYJU’S with additional capital to clear dues and address financial difficulties.
- Ranjan Pai, chairman of Manipal Group, is expected to invest in BYJU’S and bring in more private equity firms to support the company.
It appears that BYJU’S, the leading edtech company led by Byju Raveendran, is facing significant challenges and is considering the sale of Aakash Educational Services Limited, which is considered its most valuable asset. According to a report by ET, BYJU’S has engaged in discussions with private equity firms like Bain Capital and KKR regarding the potential sale of Aakash.
On the other hand, PE firms such as Carlyle are showing interest in supporting Aakash Chaudhry, the former CEO of Aakash, and his family in repurchasing the firm from Think & Learn Private Limited, the parent company of BYJU’S. However, BYJU’S has denied these reports of selling Aakash, as stated by a national daily.
It is important to note that these are current events and the situation may evolve over time. Please refer to the latest news and official statements for the most up-to-date information regarding the sale of Aakash by BYJU’S.
In a significant transaction in 2021, Aakash Educational Services Limited, co-founded by Chaudhry and his family along with private equity firm Blackstone, was acquired by BYJU’S for a staggering $950 million. This acquisition stands as the largest-ever in the field of edtech in India, making it a notable milestone.
Presently, Think & Learn Private Limited, the parent company of BYJU’S, holds the majority stake of 40% in Aakash, while BYJU’S CEO, Byju Raveendran, holds a significant 30% share. The Chaudhry family retains an 18% stake, while Blackstone maintains a residual 12% interest.
However, it is crucial to note that the aforementioned talks are still in the preliminary phase and will progress further only after a comprehensive due diligence procedure. Additionally, these discussions also involve Ranjan Pai, who is anticipated to invest $100 million in equity, along with an additional $170 million in structured debt. This investment aims to aid BYJU’S in settling $96 million in dues owed to hedge fund Davidson Kempner.
As with any business dealings, it is essential to closely monitor the latest developments and official announcements to stay fully informed regarding the progress of these talks and any subsequent transactions.
In light of the current challenges faced by BYJU’S, Manipal Group’s chairman, Pai, is expected to introduce additional private equity firms to support BYJU’S during these difficult times. This strategic move aims to strengthen the company’s position and help overcome the challenges it is currently facing.
It is important to highlight that Pai has recently increased his involvement in the Indian startup ecosystem. He has been actively engaging in discussions to invest in various promising startups, including FirstCry, Bluestone, and Pharmeasy, among others. This signifies Pai’s proactive approach towards contributing to the growth and success of the startup ecosystem in India.
Furthermore, recent reports suggest the possibility of Chaudhry making a comeback as the CEO of Aakash. This development closely aligns with the ongoing discussions regarding the potential sale of Aakash and adds an interesting dimension to the evolving situation.
As the situation continues to unfold, it is advisable to stay updated with the latest news and official announcements to gain a comprehensive understanding of the developments surrounding Pai’s involvement, Chaudhry’s potential return, and the overall progress of BYJU’S.
BYJU’S Endless Troubles
BYJU’S has been actively engaging in discussions to sell its assets as a strategic move to address its financial obligations and secure additional capital for its operations. According to reliable sources, BYJU’S has been exploring the potential sale of Great Learning and Epic, with an estimated valuation ranging from $800 million to $1 billion.
The proposal to sell Epic and Great Learning was presented by BYJU’S to its Term Loan B lenders, as part of its commitment to repay the substantial term loan of $1.2 billion procured in November 2021. Having approximately $500 million remaining from the Term Loan B, the proceeds from the sale of Epic and Great Learning would enable BYJU’S to completely clear the loan, easing its financial burden and granting the company the flexibility to engage in negotiations with other lenders.
This highlights the ongoing efforts of BYJU’S to strategically manage its financial commitments and optimize its financial position in order to sustain and expand its operations. As the situation continues to develop, it is recommended to stay updated with the latest news and official announcements for the most accurate and up-to-date information regarding the potential sale of Great Learning and Epic by BYJU’S.
BYJU’S, an edtech giant, is reportedly in talks to sell Aakash Educational Services Limited to PE firms such as Bain Capital and KKR. These discussions aim to provide BYJU’S with additional capital to address its financial difficulties. Ranjan Pai, chairman of Manipal Group, is expected to invest in BYJU’S and bring in more private equity firms to support the company.
Furthermore, BYJU’S has been attempting to sell Great Learning and Epic to repay a term loan and improve its financial position. The company is also implementing layoffs to reduce costs. More details are yet to be disclosed in the FY22 financials.
