The $1 billion acquisition of Aakash Educational Services by Edtech giant BYJU’s has finally resulted in the payment of almost Rs 1,983 crore (about $245 million) in outstanding debt to international VC company Blackstone. According to insiders with knowledge of the project, BYJU’s paid Blackstone all outstanding debts on or about September 23.
Nearly 38% of Aakash is owned by Blackstone, while nearly 75% of the price to acquire Aakash was paid by BYJU’s. One of the biggest mergers in the edtech industry was announced last month by BYJU’s: the $1 billion acquisition of offline test preparation services firm Aakash.
According to the founder and CEO of the $22 billion edtech giant, Byju Raveendran, there is only “growth ahead” as seen by the company’s FY22 financial performance. The company is combining the loss-making acquisitions and optimising the rest.
In FY22, the company reported gross revenues of around Rs 10,000 crore.
According to Raveendran, the company’s main education sector is thriving, and it has a sizable cash reserve of more than $1 billion. He asserted that BYJU is currently consolidating loss-making acquisitions like WhiteHat Jr, the troubled coding platform it purchased for $300 million.
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