Byju’s has acquired test preparation firm Aakash Institute for a nearly $1bn cash and stock deal to build one of the largest education groups in India, The institute, backed by Blackstone Group, will continue to function independently under the leadership of Founder JC Chaudhry and Aakash Chaudhry. It has over 200 brick and mortar educational centres across India and teaches aspirants of the country’s top engineering and medical schools.
India’s biggest online-education startup Byju’s had signed a deal to acquire brick and mortar test prep leader Aakash Educational Services for $1 billion. Blackstone Group-backed Aakash Educational Services ran Aakash Institute would swap a portion of its 37.5% equity in Aakash for Byju’s stake. Byju’s, which is valued at $12 bn, had been on a fund-raising spree as the pandemic demanded its online lessons.
Edtech startups in India have raised a total $2.22 bn in 2020, according to a report by Indian Private Equity and Venture Capital Association and PGA Labs. These startups, so far, have raised a total of $4 bn since 2016. Byju’s and Unacademy topped the list with a total of $2.32 bn and $354 mn, respectively. Followed by Vedantu at $206 mn, Toppr at $107 mn, and Lead School at $39.4 mn. B2B edtech firms raised a total funding of $31 mn between 2017 -20.
Byju’s is in advanced stages of talks to raise $200 mn in fresh capital from US-based investors T Rowe Price and BlackRock at a valuation of $12 bn. The latest round, if happens, would take Byju’s total fund-raise to over $1 bn this year. The fresh capital will be used for global expansion and to finance acquisitions to increase the portfolio. Less than two months ago Byju’s raised $500 mn from Silver Lake Partners, DST Global, others at a valuation of $11 bn.
Ed-tech start-up BYJU’S has raised $500M in a fresh round of funding from Silver Lake. The round also saw participation from existing investors including Tiger Global, General Atlantic and Owl Ventures. The new round values BYJU’S at $10.8B, up from its last valuation of $10.5B. Media reports state that there are more new international investors who are expected to fund BYJU’S in the next few quarters.