Folks are eager to see whether Byjus sells Aakash or not. Reason? Byju’s, the Indian edtech giant, is reportedly in talks with private equity firms to sell its controlling stake in Aakash Educational Services, a leading test prep company in India. This move comes just over a year after Byju’s acquired Aakash for nearly $1 billion, marking one of the largest deals in the Indian edtech sector.
Byju’s Acquisition of Aakash
In April 2021, Byju’s acquired Aakash Educational Services in a cash-and-stock deal worth nearly $1 billion. The acquisition was seen as a strategic move by Byju’s to expand its presence in the test prep market and tap into Aakash’s vast network of physical coaching centers across the country. Aakash, with its 33 years of experience in the test prep industry, was expected to complement Byju’s online learning platform and help the company reach a wider audience.
Byjus Sells Aakash: Reasons Behind the Sale
The decision to sell Aakash has raised many eyebrows, given the strategic importance of the acquisition. There are several factors that could have contributed to Byju’s decision to sell its stake in Aakash.
- Financial Constraints: Byju’s has been on an acquisition spree in the past few years, acquiring several companies in India and abroad. This aggressive expansion has put a strain on the company’s finances, and selling Aakash could be a way for Byju’s to raise funds and reduce its debt.
- Integration Challenges: Integrating Aakash’s physical coaching centers with Byju’s online platform has proven to be a challenge. The two companies have different cultures and operating models, and aligning them has been a complex process.
- Changing Market Dynamics: The Indian edtech market has evolved rapidly in the past few years, with several new players entering the space. The competition has intensified, and Byju’s may be looking to focus on its core online learning platform rather than managing a vast network of physical coaching centers.
Note: We have thoroughly explained the list of Byju’s acquisitions and subsidiaries. Check out the article for detailed information.
The Future of Aakash
The sale of Aakash will have significant implications for the Indian edtech sector. Aakash is a well-established brand in the test prep market, and its acquisition by a private equity firm could lead to further consolidation in the industry.
It will also be interesting to see how Aakash evolves under new ownership and whether it continues to expand its physical presence or shifts its focus to online learning.