Sunday, March 19, 2023

Byju’s acquires Aakash India for $1 billion

In a significant move in the education industry, Byju’s, the Indian online learning platform, has announced its acquisition of Aakash Educational Services Limited (AESL) for a whopping $1 billion. This acquisition will enable Byju’s to establish its foothold in the test preparation segment and expand its reach across India.

Aakash Educational Services Limited is a prominent name in the test preparation industry in India. It has more than 200 physical coaching centres across the country, and it prepares students for medical and engineering entrance exams such as the Joint Entrance Exam (JEE) and the National Eligibility cum Entrance Test (NEET). It also offers foundation courses for students from classes 8 to 10.

Byju’s, on the other hand, is a Bengaluru-based edtech company that offers online learning resources for school students, from kindergarten to 12th grade. With more than 80 million registered users and 5.5 million paid subscribers, Byju’s is the most valued edtech company in India, with a valuation of over $16.5 billion.

The acquisition of Aakash is expected to help Byju’s strengthen its position in the Indian education market. With the acquisition, Byju’s will be able to expand its reach and offer more comprehensive learning resources for students preparing for competitive exams. It will also give Byju’s access to Aakash’s offline coaching centres, which have a strong presence in the northern and western regions of India.

The acquisition will also help Byju’s enter the highly competitive test preparation segment, which is estimated to be worth $8 billion in India. Byju’s has already made a significant impact on the K-12 education sector in India, and this acquisition will enable it to expand its offerings to students preparing for entrance exams.

For Aakash, the acquisition by Byju’s is an opportunity to grow and expand its operations. Aakash has been in the test preparation business for over 33 years and has helped over 2.5 million students prepare for entrance exams. With Byju’s acquisition, Aakash will be able to leverage the technology and resources of Byju’s to enhance its offerings and reach out to a larger audience.

The acquisition of Aakash by Byju’s is a significant development in the Indian education sector. It is a clear indication of the growing importance of edtech companies in the country, and the increasing demand for online learning resources. With the COVID-19 pandemic forcing schools and colleges to shift to online learning, the edtech sector in India has witnessed a massive surge in growth. The acquisition of Aakash by Byju’s is expected to further fuel this growth and transform the education sector in India.

In conclusion, Byju’s acquisition of Aakash is a strategic move that will benefit both companies and students. It will help Byju’s expand its offerings and establish its position in the test preparation segment, while Aakash will be able to leverage the technology and resources of Byju’s to grow and expand its operations. The acquisition is a clear indication of the growing importance of edtech companies in India, and the potential for further growth in the sector in the years to come.

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