India’s most valued startup BYJU’S is preparing to list its subsidiary Aakash Educational Services in the first half of next year, sources familiar with the development told Moneycontrol.
The size of the initial public offering (IPO) could be in the range of $1 billion dollars, valuing Aakash at $3.5-$4 billion. While the edtech company looks to file the IPO with the India’s market regulator in January, it plans to list only by June or the first half of FY24.
“Aakash is profitable and is a strong brand that is better understood in India. Investors were of the view that it should be listed here,” one of the sources told Moneycontrol.
According to the report, while BYJU’S still hopes to be listed in the US, it might happen only after Aakash is listed.
BYJU’S acquired Aakash in April last year for a cash-and-stock deal close to $950 million, in what was one of the biggest acquisitions in India in the education space.
Early last week, BYJU’S reported to have raised an unsecured loan of Rs 300 crore ($36.45 million) from Aakash “principal business activities”. The Rs 300 crore loan from Aakash Educational Services Limited was in effect an advance against the marketing activities and campaigns that BYJU’S has been running for Aakash.
“In order to benefit from the economies of scale, BYJU’S buys media spots in bulk for all its group companies. This is a strategy that has yielded really positive results for both the group and Aakash,” a BYJU’S spokesperson had told YourStory.
The spokesperson also said that Aakash has grown more than 100% since it was bought by the edtech decacorn.
