A new chapter unfolds for Byju’s-owned Aakash Institute as Ranjan Pai, Chairman of Manipal Education and Medical Group, reportedly secures a 40% stake in the test-prep business. According to sources, the Aakash board has greenlit the conversion of Ranjan Pai’s $300 million investment in 2023 into equity, propelling the company’s valuation to approximately $700 million and marking it debt-free, reports The Economic Times.
Byju’s, a prominent player in the edtech sector, navigated a challenging period and strategically acquired IPO-bound Aakash Institute for $950 million in 2021, solidifying one of its most substantial mergers and acquisitions.
Pai’s involvement in resolving matters like the Davidson Kempner debt issue positions him strategically, fostering potential benefits for both Aakash and Byju’s. The chairman’s role in the recent stake acquisition adds an intriguing layer to the ongoing developments.
Recent financial reports indicate a robust performance for Aakash Institute, showcasing an 82% surge in total profit to Rs. 79.5 crore for FY2022. Operating revenue witnessed a substantial 45% growth, reaching Rs. 1,421 crore, with coaching fees contributing a significant 88% to the operating revenue, totalling Rs. 1,282.3 crore. The franchise segment of its business added Rs. 139 crore to the revenue.
However, Aakash Institute experienced a notable uptick of 35% in employee-related expenses, its highest cost category, amounting to Rs. 722.8 crore. This category represents around 54% of the total expenses, which increased by 34% to Rs. 1,331.8 crore.
Aakash Institute continues its commitment to providing classes and study material for medical and engineering school entrance tests such as NEET and IIT-JEE, catering to undergraduate students. Additionally, the institute offers classes for Olympiad and NTSE, along with a foundational classroom curriculum. As the edtech landscape evolves, Ranjan Pai’s strategic investment signals a transformative phase for Aakash Institute under the Byju’s umbrella.
