Manipal Education Group's Ranjan Pai Acquires 40% Stake In Byju’s Aakash Institute: Report

The turmoil-hit Byju’s parent company, Think & Learn, acquired the coaching chain Aakash Institute for $950 million in 2021

After this conversion, the edtech company’s valuation will stand at about $700 million

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Edtech firm Byju’s-owned Aakash Institute is likely to get a new investor as the Chairman of Manipal Education and Medical Group has reportedly bought 40 per cent stake in this Byju’s subsidiary, according to a report released on Thursday. The Aakash board has approved the conversion into equity of the $300 million investment made by Pai in 2023 in an effort to help Byju’s. After this conversion, the edtech company’s valuation will stand at about $700 million. In addition, this conversion will also render the edtech debt-free, according to a The Economics Times report.

The turmoil-hit Byju’s parent company, Think & Learn, acquired the coaching chain Aakash Institute for $950 million in 2021. This was one of the most significant acquisitions in recent times

“The board has approved the conversion, and Pai is now the largest shareholder. He has been closely involved with Raveendran in sorting out the Davidson Kempner debt issue and other matters too. ‘Pai factor’ will be “critical for the fate of both Aakash as well as Byju’s,” the report quoted a person familiar with the matter as saying.

Pai, Raveendran and Think & Learn will now cumulatively hold 80-82 per cent of Aakash Institute. At the same time, Aakash promotors, the Chaudhrys and private equity firm Blackstone will own the remaining 18 per cent of the subsidiary.

Aakash Institute reported an 82 per cent rise in its total profit to Rs 79.5 crore for FY2022 earlier this month. The company’s operating revenue surged 45 per cent to Rs 1,421 crore during the period, according to the company's shared data with the Ministry of Corporate Affairs.

According to the corporation, tutoring fees accounted for around 88 per cent of Aakash's operating revenue, or Rs 1,282.3 crore. The franchising segment of the firm generated approximately Rs 139 crore in revenue.