Byju’s to acquire Aakash Educational Services in $700 mn deal

Byju’s is acquiring Blackstone Group-backed Aakash Educational Services in an estimated $700 mn cash-and-stock deal. Post acquisition, Blackstone Group and Aakash Institute’s founders will hold a minority stake in Byju’s at a valuation of about $13 bn. “We will integrate Aakash’s expertise in test prep with our content and tech capabilities and will invest further capital into Aakash once the invest further capital into Aakash once the integration is done," founder Byju Raveendran said.

Aakash Educational Services is the edtech decacorn’s second large acquisition in less than a year. It scooped up WhitehatJr in a $300 mn cash deal in August 2020. Last week, the Bengaluru-based company raised $460 mn in a Series F funding round at a valuation of $13 bn. A major chunk of that capital will be used to finance the Aakash buyout.

“The acquisition will help the company cross the billion-dollar mark in revenues in the next financial year. We are looking at closing the next year at $1.2-1.3 bn in revenues,” Raveendran said. The company is also in the final stages of closing the acquisition of Toppr for $150 mn, which it may finance through internal cash reserves.

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