Aakash’s major investor Blackstone, among other shareholders, were due to be paid partly in cash and partly in BYJU’S stock this week
BYJU’S sought a two-month extension, reports have stated
A company spokesperson confirmed that all payments are to be completed by the agreed-upon date
Bengaluru-based edtech giant BYJU’S
is delaying payments for the $1 Bn acquisition deal of Aakash Institute it acquired last year. According to reports, the deal was to be completed in June 2022, after being deferred previously due to CCI’s intervention.
A Bloomberg report, citing sources mentioned that Aakash’s major investor Blackstone, among other shareholders, were due to be paid partly in cash and partly in BYJU’S stock this week, but BYJU’S sought a two-month extension. It also mentioned that some sellers received partial payment in 2021.
Aakash Institute, which runs 200+ physical coaching centres across 130 cities and provides engineering and medical test prep services for classes 10-12 students, was acquired by BYJU’S in a $1 Bn deal in April 2021. It was then touted as the largest acquisition deal in the edtech industry, merging the two to build an omnichannel platform.
As per the deal, Aakash Chaudhry and the Chaudhry family, the owners of the institute, would completely exit the company, while Blackstone (37.5% owner of Aakash) would get paid in June 2022 with part cash and part equity, only to be delayed for another two months.
Denying the reports, a BYJU’S spokesperson told Inc42, “The acquisition process of Aakash is fully on track and all payments are expected to be completed by the agreed upon date i.e. August 2022.”
While the BYJU’S spokesperson stated that the edtech, along with its ‘group companies, is perfectly poised to provide access to quality education’, the picture at the end is not so rosy.
In fact, the edtech industry has been bleeding red since the reopening of schools and colleges, with minimum funding inflow and maximum layoffs within the sectors. Inc42 exclusively reported yesterday that WhiteHat Jr, a group company of the edtech giant, laid off 300+ employees, mostly from the sales and marketing teams.
Previously at WhiteHat Jr, around 1,000 senior-level employees resigned, due to the company’s rigid policy of working from the office only. Reports of extremely high employee turnaround have also surfaced from BYJU’S and its other acquired companies.
BYJU’S is currently valued at $22 Bn after having raised over $1.5 Bn in the past year, marking multiple acquisitions. It is India’s highest-valued startup.
