EXCLUSIVE: BYJU’S co-founder Divya Gokulnath confirms Aakash IPO, says listing will happen in India

Aakash Educational Services, which was acquired by edtech major BYJU’S for $1 billion in 2021, will get listed in India, co-founder Divya Gokulnath told Business Today on Tuesday. Gokulnath also said: “We would like to list it in India and we are working on it. We have been planning it for a few months now. However, there is no timeline that I can give you,” she said.
 
In November last year, rumours were rife that BYJU’S is planning to roll out a Rs 8,000 crore initial public offering (IPO) of Aakash in 2023.
 
It was earlier reported that the edtech major was in talks with investors, such as Texas Pacific Group Capital (TPG), to raise more than $500 million. Speculation was that this capital infusion was much needed by the company as it was looking to utilise the funds to help stave off potential debt issues. Addressing this particular issue, Gokulnath, however, clarified to BT that the company is focused on scaling its offline model -- the BYJU’S tuition centres -- and for that they need investment. Additionally, the company is focusing on its K-12 models as well.
 
BYJU’S parent, Think & Learn Pvt. Ltd, saw its consolidated losses widen by nearly 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Revenues from operations grew marginally to Rs 2,280.26 crore in FY21 from Rs 2,189 crore in FY20. The firm attributed the subdued growth to a change in the way it recognises revenue, as advised by its audit firm Deloitte Haskins & Sells. 
 
She also revealed that the company is focused on achieving “group-level profitability” in the coming months. She said, “Except for WhiteHatJr, all our acquired companies are doing very well.” She said that they “have not missed any missed deadlines” and are on their way to become profitable. 
 
The co-founder also addressed valuation concerns. Netherlands-based Prosus, which backs the Byju Raveendran-led firm, estimated its 9.7 per cent stake to be around $578 million in the September quarter. Experts started speculating that BYJU’S, which is one of the most valued companies in the world, may not be a decacorn anymore. 
 
“BYJU’S is still valued at $22 billion and there is no change in valuation,” she said.

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