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Edtech major BYJU’S is reportedly seeking investors to divest a portion of its stake in its subsidiary Aakash Education Services Limited.

BYJU’S holding company—Think & Learn Pvt Ltd—will consider reducing its stake in Aakash by up to 20% out of its current 70% stake, television news channel ET Now reported, citing sources.

The talks with potential investors are early and preliminary, the report added.

BYJU’S declined to comment on the development.

This report on stake sale comes after the edtech unicorn revealed its intentions of launching the initial public offering (IPO) of Aakash by mid-2024.

The Bengaluru-based edtech company bought brick-and-mortar education player Aakash in 2021 for about $1 billion. Since the acquisition, Aakash’s growth has accelerated, BYJU’S had said, adding that in the past two years alone, its revenue has tripled.

Among BYJU’S acquisitions, Aakash stands out as one of the most successful.

This development occurs amid a challenging period for the edtech major, as it faces multiple obstacles such as the departure of Deloitte as its auditor, the resignation of three prominent board members, conflicts with creditors regarding a $1.2-billion Term Loan B (TLB), and delays in filing financial statements, among other issues.