Byju’s is no more a prolific edtech startup that achieved unicorn status. With its latest record acquisition, Byju’s is on its way to becoming an educational conglomerate.
- Blackstone Group, which backs Aakash Institute, will hold a minority stake in Byju’s for near about $13 billion after the deal is completed.
- Earlier in March 2021, the company raised Series F funding of $460 million at a valuation of $13 billion, which will be used to finance the buyout of Aakash Education Services.
- Byju’s current revenue is around $800 million, and they aim to close the next financial year at $1.2-1.3 billion in revenue.
Boisterously moving ahead, one of the most valuable startups, Byju’s has added yet another feather of feat in its cap by acquiring Aakash Educational Services for $950-million. Post integration, the company will use Aakash’s resources in their test-prep series with their rich content and technological capabilities. Aakash Institutes had become a household name for students aspiring to get into the best medical and engineering institutions. They have more than 215 centres running actively and delivering exceptional results for 2.5 lakh students, which in turn leads to earning them degrees from the finest and premier educational institutes of India.
Watch: Byju’s billion-dollar acquisition of Aakash Educational Services
Byju’s being the Education Giant
In March 2020, Byju’s had released its intention and plan to acquire the Institute. A year later, they have closed the $950-million deal in all cash and stock. Last year in August, the company made its second-largest acquisition with Whitehat Jr in a $300-million cash deal. Leaving no stone unturned, the leadership team of Byju’s has made stern efforts to acquire other leading startups in the edtech space such as TutorVista and Edurite from Pearson Group in 2017.You will find more infographics at Statista
Strong Backup Force
Founded in 2015 in Bangalore by Byju Raveendran, the company is now leading the unicorn club of India. Being backed up by marquee investors like Mary Meeker, Yuri Milner, Chan-Zuckerberg Initiative, Tencent, Sequoia Capital, and Tiger Global, Byju’s has been unstoppable amid the pandemic. They made their significant revenue generation by being the sponsors for India’s test cricket matches.
Running on a freemium model, Byju’s is steering towards a future of qualitative learning. Especially during a pandemic when education was remodeled through e-learning, Byju’s is in line with promoting the hybrid model, which will bring the best of offline and online learning.
In just 6 months during the lockdown, Byju’s has added 45 million new students to its platform.
Way ahead for Byju’s with Blackstone
Coming with 33 years of running Aakash Institutes, Founder-Chairman JC Chaudhary has confirm the deal will enhance operational verticals. Aakash Educations will continue to operate as a separate entity along with Blackstone, with the “same passion and commitment” as it was earlier. As in 2019, Blackstone picked a 37.5 percent stake in Aakash Educations, valuing at around $500 million. Thus they have a key role to play in its future commitments and strategies.