Exclusive: BYJU’S-Owned Aakash’s Sales Cross INR 2,000 Cr Mark In FY23

BYJU’S-owned Aakash Education’s operating revenue likely crossed the INR 2,000 Cr mark in the financial year ended March 31, 2023. The coaching institute is likely to report an operating revenue of INR 2,325.1 Cr in the financial year 2022-23 (FY23), according to Aakash’s valuation report filed with the Ministry of Corporate Affairs.

This would translate to about 63% increase in operating revenue from INR 1,421.2 Cr Aakash reported in FY22. 

However, the operating revenue in FY23 is less than BYJU’S estimates. In April 2023, the edtech startup said in a statement that Aakash would end FY23 with INR 3,000 Cr revenue.  

It is pertinent to note that the FY23 numbers are unaudited, whereas the FY22 financial numbers were audited. As such, the audited number for FY23 might differ from what the company has disclosed in the valuation report. 

Meanwhile, Aakash’s revenue stood at INR 1,702.1 Cr in the first eight months of FY24, as per the valuation report. 

On the other hand, the coaching institute’s profit stood at INR 330 Cr in FY23, as per the unaudited numbers. This would mark an almost 300% increase compared to the audited net profit of INR 79.5 Cr in FY22. 

Besides this, Aakash’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at INR 347.5 Cr in FY23 and INR 122.4 Cr in the first eight months of FY24, as per the report. 

Employee benefit expenditure was the biggest expense for Aakash. It stood at INR 1,204.5 Cr in FY23 and INR 970.5 Cr in the first eight months of FY24. 

For comparison, the company’s employee benefit expenses stood at INR 722.8 Cr in FY22. 

Infrastructure cost, including the rent paid for the coaching centres, stood at INR 296.9 Cr in FY23 and INR 250.8 Cr in April-November 2023. 

Overall, Aakash’s total operational expenses stood at INR 1,977.6 Cr in FY23 and INR 1,579.7 Cr in the eight months of FY24. 

Last week, Inc42 exclusively reported about BYJU’S financial numbers for FY23. The Byju Raveendran-led startup is expected to report a total revenue of around INR 6,500 Cr in FY23. This means, Aakash will account for almost 36% of BYJU’S total revenue. 

However, it must be noted that BYJU’S is no longer the biggest stakeholder in Aakash. Ranjan Pai, the chairman of the Manipal Education and Medical Group (MEMG), is likely to emerge as its largest shareholder with a 40% stake.

Earlier this year, it was reported that the board of Aakash has given the nod to the conversion of $300 Mn investment made by Pai in 2023 into equity. This move values the company, considered one of the remaining valuable assets for BYJU’S, at around $700 Mn and eliminates its outstanding debt.

BYJU’S Many Troubles 

Desperate for funds to sustain its operations, BYJU’S was reportedly in talks to sell Aakash late last year. The edtech giant engaged in discussions with private equity firms like Bain Capital and KKR regarding the potential sale of Aakash. However, BYJU’S refuted these reports.

Besides Aakash, BYJU’S wanted to sell Great Learning and Epic for $800 Mn-$1 Bn to repay its $1.2 Bn Term Loan B which it took in November of 2021.

The company has also been involved in multiple troubles over the last year or so. Last year, it saw half of its board members resign and has also been mired in various legal troubles.

Now, BYJU’S shareholders have called for an extraordinary general meeting (EGM) to reconstitute the company’s board and bring about a leadership change.