Byju’s to contribute Blackstone-Backed India tutor with $1 Billion
The biggest online education learning app start-up in India Byju’s has signed an agreement to obtain bricks and mortar head of test preparation Aakash Educational Services Ltd. for $1 billion, according to someone familiar with the discussions.
However, the agreement for what will be one of the largest Ed technology acquisitions in the world is expected to be reached in the next two to three months.
In the agreement with Byju, the founders of Aakash, the Chaudhry family, will leave completely, while Blackstone will exchange a portion of its 37.5% interest in Aakash for Byju’s interest.
The Indian educational technology and online tutoring firm, Byju’s is valued at 12 billion dollars and has been in the middle of a fundraising campaign as the pandemic escalates demand for its online lessons.
As the e-learning start-ups have flourished, offline tutoring centres have been severely impacted by the pandemic, which has closed schools and tutoring centres since last March.
Besides, the Blackstone Group-supported Aakash Educational Services directs Aakash Institute, which has more than 200 bricks and mortar centers and tutor students to gain entry into the country’s engineering and elite medical schools.
Furthermore, the leading market player with highest market share in india’s growing edtech space ‘Byju’s’ was founded by Byju Raveendran, who designed the app for smartphones in 2011 that offers mathematical and scientific lessons through video animations and games.
Additionally, over 70 million users have logged into more than 1,700 cities across the country, Byju said last September when he announced a fundraising campaign.
Lastly, the second most valuable Indian start up is supported by Facebook founder Mark Zuckerberg Chan Zuckerberg Initiative, Tiger Global Management. As well, Byju’s comprises more than 4.5 million dollars paid users and it expects to double its revenues to $1 billion in the fiscal year ending March 2021.