Ranjan Pai Comes To BYJU’S Rescue? To Pick Up 40% Stake In Aakash

SUMMARY

The board of Aakash has given the green light to convert the $300 Mn investment

This move values the company, considered one of the remaining valuable assets for BYJU’S, at approximately $700 Mn

Aakash saw its profit widen by 82% to INR 79.5 Cr in FY22, and saw its revenue increase by 45% to INR 1,421.2 Cr from INR 982.7 Cr in FY21

Beleaguered edtech giant BYJU’S-owned Aakash Institute is set to see chairman of the Manipal Education and Medical Group (MEMG), Ranjan Pai, emerge as its largest shareholder with a 40% stake buyout.

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

It was reported earlier that Pai is contemplating a hefty investment in Aakash Educational Services Limited, BYJU’S’ physical education division, with figures reaching up to $300 Mn.

Earlier it was reported that Pai was contemplating a hefty investment in Aakash Educational Services Limited (AESL), BYJU’S’ physical education division.

“The board has approved the conversion, and Pai is now the largest shareholder. He has been closely involved with Raveendran in sorting out the Davidson Kempner debt issue and other matters too,” a source said as quoted in the report.

He also added that the ‘Pai factor’ would be critical for the fate of Aakash, BYJU’S.

Last month, Pai invested $168 Mn in Aakash Institute, a subsidiary of BYJU’S.

Pai, Raveendran, and Think & Learn will collectively possess 80-82% ownership in Aakash. The remaining 18% will be owned by private equity firm Blackstone and Aakash promoters, the Chaudhrys.

BYJU’S consolidated net loss crossed the INR 8,000 Cr, or about $1 Bn, mark in the financial year ended March 31, 2022. Its operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review, mostly on the back of improvement in the financial performance of Aakash.

Aakash saw its profit widen by 82% to INR 79.5 Cr in FY22, and saw its revenue increase by 45% to INR 1,421.2 Cr from INR 982.7 Cr in FY21.

Meanwhile, Pai is increasingly becoming an active investor in Indian startups. The Manipal Group chairman invested in startups such as FirstCry, Bluestone and Pharmeasy, among others, last year.