Byju’s To Pay $1 Billion For Blackstone-Backed Test-Prep Leader Aakash
Byju’s app supplies lessons in mathematics and science through video animations and video games
India’s most significant online-education start-up Byju’s has signed a deal to acquire traditional test prep leader Aakash Educational Solutions Ltd. for $1 billion, according to an individual with understanding of the talks.
The deal for what will be among the biggest edtech acquisitions in the world need to close in the next two or 3 months, said the person, who didn’t wish to be determined as the details is private.
Bangalore-headquartered Byju’s is valued at $12 billion and has actually been on a fund-raising spree as the pandemic has sent out need for its online lessons skyrocketing. India’s second-most valuable start-up is backed by the similarity Facebook founder Mark Zuckerberg’s Chan Zuckerberg Initiative, Tiger Global Management and Bond Capital, co-founded by Silicon Valley financier Mary Meeker.
A Byju’s spokesperson declined to comment, while e-mails and calls to New Delhi-based Aakash Educational Services and its President Aakash Chaudhry did not generate a reaction.
Blackstone Group-backed Aakash Educational Solutions runs Aakash Institute, which has over 200 traditional centers and tutors students to acquire entry into the nation’s elite engineering and medical schools. Its student count is over 250,00 0, according to its website.
While online learning startups have flourished, offline tutoring centers have been terribly hit by the pandemic, which has actually closed schools and tutoring centers because March last year.
In the handle Byju’s, Aakash’s founders, the Chaudhry household, will exit entirely, while Blackstone will swap a portion of its 37.5% equity in Aakash for Byju’s stake, stated the individual.
Byju’s was founded by Byju Raveendran, a former instructor and the boy of teachers, who developed the mobile phone app in2011 The app deals with students from kindergarten to the 12 th grade, and has been including over 5 million users a month. India has about 250 million trainees in the K-12 grades. The app supplies lessons in mathematics and science through video animations and games.
More than 70 million users logged in from over 1,700 cities around the country, Byju’s said last September when it revealed a fund raise. Of these, over 4.5 million are paid users. It’s targeting doubling its revenues to $1 billion in the current financial year ending in March 2021.
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