LAST UPDATED: April 5, 2021, 4:40 p.m.
New Delhi (Anish Yande): Byju’s is set to acquire the Indian tutoring firm Aakash Educational Services. The edtech startup would be finalizing the acquisition of Aakash Educational Services through a cash and stock deal amounting to almost $1 billion.
Byju’s acquires Aakash Educational Services for $1 billion:
Aakash Educational Services, which provides tutoring to students preparing for entrance exams IIT-JEE and NEET, is backed by the Blackstone Group. Aakash has more than 215 centers across India for students preparing for exams such as NTSE, Olympiads, KVPY, and school/board exams. The tutoring firm provides tutoring services to around 1.5 lakh students.
The online tutoring firm has stated that the deal is a strategic partnership with Aakash Educational Services Limited.
Aakash Educational Services would be functioning independently following the acquisition. Founders of Aakash Educational Services, Aakash Chaudhry, and J.C. Chaudhry would continue in leadership roles.
Byju’s, the ed-tech startup, offers personalized learning programs for Indian students. The startup has added 45 million new students within 6 months in 2020.
The acquisition is a part of Byju’s efforts for improving its offerings in the test preparation segment and offline tutoring.
Aakash and Byju’s to provide omni-channel for students:
Blackstone Group had acquired a stake of 37.5 percent in Aakash Educational Services in 2019. The valuation of Aakash rose to $500 million following the acquisition of the stake.
Byju’s had acquired Osmo, a US-based firm that developed educational games in 2019. The edtech startup had acquired Osmo for a consideration of $120 million.
Meanwhile, Byju’s competitor, Unacademy, has finalized six acquisitions in the test preparation segment in 2020.
Aakash Chaudhry, Managing Director and Co-promoter of Aakash Educational Services, has stated the acquisition would enable the two companies to establish the largest omni-channel for Indian students.
‘Together, we will leverage the physical location and technology and online learning and offer students that is unique.’ he stated. Aakash and Byju’s would offer ‘very substantial and value-additive services to students.’
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