BYJU’s, India’s biggest online-education startup, is all set to acquire Aakash Educational Services Ltd. To acquire the Akash, brick, and mortar test prep leader, BYJU’s has signed a one billion deal.
One of the largest ed-tech acquisition deals in the world will soon be concluded and set to close in the next few months. BYJU’s, which is a Bangalore based $12 billion edtech, has been on a fundraising spree. The pandemic followed by extensive lockdown and shutting down of educational institutions has made the demand for its online lessons soaring high.
Tiger Global Management and Bond Capital, co-founded by Silicon Valley investor Mary Meeker and Facebook Inc. founder Mark Zuckerberg’s Chain Zuckerberg Initiative back this India’s second-most valuable startup.
Owing to the prolonged lockdown and betting that its effects will introduce parents and kids worldwide to a burgeoning format, online education has become one of the hottest investment after the pandemic outbreak.
Due to the scarcity of quality learning material and at times scarcity/ unavailability of teachers, students are also getting more encouraged towards online education and to try out widely accessible virtual classes.
Hundreds of millions of dollars were raised by BYJU’s itself in the past year from investors like T. Rowe Price, Silver Lake, and BlackRock. Whereas in comparison to that, Unacademy secured financing in a round in September at a valuation of $1.45 billion.
In the acquisition deal with BYJU’s, the founding Choudhary family will exit the institution completely and the Blackstone will swap 37.5% of the equity in Akash for BYJU’s stake.
Byju Raveendran, a former tutor, and son of educators who conceived the smartphone app in 2011 has founded BYJU’s.
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