As the education industry is growing with leaps and hops in the times present, there are speculations that Edtech decacorn Byju’s is in talking terms with the already leading test preparation giant – Aakash Educational Services. The deal is likely to be sealed in a time of about two to three months. However, nothing concrete has come out of this, and all are speculations until someone from the authority comments. Rumours’ long ears know that the deal might be the most significant edtech acquisitions in the world at about 700 million dollars to 1 billion dollars. The conversation is at stages and “even the term sheet has not been signed yet”, as per the reports by big media houses.
What is the deal?
Bengaluru-based Byju’s, which is esteemed at $12 billion, is upheld by the giant – The Chan Zuckerberg Initiative and The Tiger Global. It has been on a raising money binge given flooding interest for its #onlinelessons during the pandemic. Blackstone Group supported Aakash Educational Services, which runs Aakash Institute, has more than 200 brick-and-mortar centers across the nation and more than 2.5 lakh students in their system.
According to Business Standard “It makes sense for Byju’s to acquire Aakash, because the company has to justify the $12 billion valuation,” said a source from the industry. “For that to happen, their revenue has to scale up, which has not been happening in the current business, and they are trying to achieve it through the inorganic route.”
Both the educational organizations declined to remark on the similar topic presently nothing is likely to be said about the deal in the making.