BYJU'S test preparatory arm, Aakash Education, to launch IPO next year

Ed-tech major BYJU'S would launch an initial public offering (IPO) of its test preparatory arm Aakash Education Services Ltd by the middle of next year, the company said on Monday. "BYJU'S ... will launch the IPO of its subsidiary, Aakash Education Services Limited (AESL) mid next year," BYJU'S stated. BYJU'S Board has given its official nod for the IPO.

"The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year," the company said.

BYJU'S acquired Aakash Education for around $950 million (Rs 7,100 crore) in April 2021. Since the acquisition, Aakash has clocked a three-fold jump in revenue in the last two years.

"The upcoming IPO will provide a significant capital infusion to bolster Aakash's infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation. Aakash is uniquely positioned to capitalize on this growth due to its comprehensive range of offerings that combine the best of classroom-based learning with cutting-edge digital products and services tailored for engineering and medical entrance exams," the statement further read.

"Aakash is uniquely positioned to capitalise on this growth due to its comprehensive range of offerings that combine the best of classroom-based learning with cutting-edge digital products and services tailored for engineering and medical entrance exams," the statement added.

BYJU's said Aakash Education's revenue could reach Rs 4,000 crore with an EBITDA (operational profit) of Rs 900 crore in the fiscal year 2023-24.

Aakash has over 325 centres currently with more than 4,00,000 students across the country.

"We have made a number of overseas acquisitions (investing an amount of Rs 9,000 crore) over the years as part of our growth strategy," BYJU's Founder and CEO Byju Raveendran said. "I also want to highlight that BYJU'S has brought more FDI to India than any other Indian startup (Rs 28,000 crore), and as a result, we have been able to create job opportunities for more than 55,000 talented professionals. This makes us India's largest employer among startups," Raveendran stated.

The ed-tech company is India's most valuable startup.

 

(With inputs from PTI)

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