Indian Economy News

Byju's acquires Aakash Educational Services for US$ 1 billion via strategic merger

  • IBEF
  • April 6, 2021

Byju's, an edtech decacorn, has completed the acquisition of Aakash Educational Services Limited (AESL) for nearly US$ 1 billion. According to reports, the stock-and-cash transaction is the largest in the education sector.

According to Byju's, the collaboration is a strategic one with AESL, a pioneer in test-prep services.

Mr. Byju Raveendran, Founder, and CEO, Byju’s, said, “I'm pleased to welcome Aakash Educational Services Limited (AESL), the industry leader and most trusted name in test-prep services, to our team. Our complementary capabilities will allow us to develop expertise and design engaging and individualised learning programmes. The future of education is hybrid, and this union will offer the best of both offline and online learning together, as we integrate our experience.”

He stated that the pandemic has pushed the significance of a blended learning approach to the front. This collaboration will help Aakash grow even faster as we merge our resources to bring years of knowledge and experience together. This collaboration brings together two of India's most well-known and trusted education brands, merging Aakash's test-prep teaching methods experience with Byju's tech and content capabilities.

Aakash continues to have developed a highly successful learning environment that has assisted millions of young aspirants in gaining admission to the country's top universities. In 2019, AESL joined forces with Blackstone to form India's largest digitally powered, omni-channel test preparation group.

Mr. Aakash Chaudhry, managing director, AESL, said, “At Aakash, we aim to enhance student outcomes by introducing innovative, digitally-enabled learning solutions. We'll partner with Byju's to establish an omni-channel learning platform that will take the test-prep experience to the next level.”

He said, “Although this alliance will strengthen our operational verticals, Aakash will continue to work independently with the same enthusiasm and dedication. We are thrilled to be collaborating with Byju's and will work hard to provide long-term benefit to our learners, staff, investors, and other stakeholders.”

The inclusion of Aakash to Byju's product range is a big move forward. Byju's commitment to developing impactful learning experiences for students is reinforced by the addition of new verticals, subjects, and languages to the same platform.

Mr. Amit Dixit, co-head of Asia Acquisitions and head of India Private Equity at Blackstone, said, “AESL is one of India's leading education brands, with a competent management team, best-in-class corporate governance, and a strong position.”

Mr. Dixit said, “We've always anticipated that omni-channel would be the winning strategy in test prep and tutoring, and we're excited to be a part of the collaboration between Aakash and Byju's, two of India's leading supplementary education firms. The combination of Aakash and Byju's is extremely complementary, and we are delighted to contribute to the development of India's largest education business.”

On this deal, EY acted as Byju's primary financial advisor. The AESL's exclusive advisor was Phoenix Advisors.

Aakash offers test preparation services to students studying for medical and engineering entrance exams, school/board exams, KVPY, NTSE, Olympiads, and other Foundation level exams through its network of over 215 centres. It is well-known for its integrated teaching approaches and student-centered learning.

Byju's, which was established in 2015, is the market leader in India for personalised learning programmes for school students. The app, which has over 80 million students learning, 5.5 million annual paying subscriptions, and an annual renewal rate of 86%, develops customised learning plans for individual students based on their proficiency and capacities, enabling them to learn at their own speed.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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