India-based multinational educational technology firm- Byju’s has reportedly announced the acquisition of exam-preparation company Aakash Educational Services Ltd. for approximately USD 1 billion, making it the biggest stock-and-cash deal in the educational space to date.
According to a statement by Byju’s, the deal marks a strategic partnership with Aakash Educational Services, a prominent name in test-preparation solutions.
Byju Raveendran, Founder, and CEO of Byju’s, was reportedly quoted stating that the integrated strength of both the entities will allow Byju’s to enhance their capabilities and build engaging and customized learning programs.
Reports claim that the alliance brings two of the leading and reliable education brands in India- integrating Aakash’s expertise in test-preparation systems and Byju’s technology and content capabilities. Post the integration, Byju’s is likely to make more investments to support Aakash’s growth.
With more than 33 years of experience, Aakash claims that it has developed an effective learning platform that has helped many young aspirants to get admission into some of the best institutions across India.
Elaborating further on the above, Aakash Educational Services joined hands with private equity company- Blackstone to develop the nation’s largest digitally-led omnichannel test preparation entity. Under the leadership of Founder JC Chaudhry and Aakash Chaudhary, the institution will continue to operate independently.
Notably, the acquisition of Aakash is an integral step towards strengthening Byju’s product offerings. It restates Byju’s focus on developing impactful learning products for students by adding additional verticals, languages, and subjects on the same platform.
With more than 215 centers spanning India, Aakash Educational Services offers test preparatory solutions to students that prepare for engineering and medical entrance exams, NTSE, school or board exams, Olympiads, KVPY, and other foundational level exams.
On the other hand, incorporated in the year 2015, Byju’s is a leading name in offering customized learning solutions for school students across the nation. With more than 80 million students learning from the app, 5.5 million annual paid subscriptions and an annual renewal rate of 86%, the Byju’s application offers personalized learning experiences for students based on their proficiency levels.