BYJU’S Aakash to launch IPO next year
Edtech Home BYJU’S announced that it will launch the IPO of its subsidiary, Akash Educational Services Limited (AESL) in the middle of next year.
The IPO will mark a significant milestone in the continued growth and expansion of Aakash + BYJU’S, creating a comprehensive suite of products that cater to a wide range of students.
The BYJU’S Council has granted its official sanction for this pledge. The company said the appointment of commercial bankers to go public will be announced soon to secure the planned listing next year.
The company added, “The upcoming IPO will provide a significant infusion of capital to enhance Akash’s infrastructure, scale it up, and extend quality preparatory education to more students across the country.”
Since its acquisition, the company has claimed that Aakash has benefited from several synergies with BYJU’S that have fueled its growth, posting a three-fold increase in revenue in the past two years. AESL revenue said to be on track to reach ₹4,000 crore with EBITDA of ₹900 crore in the 2023-24 financial year.
Test prep market revenue is expected to grow at a compound annual growth rate of 9.3 percent over the period 2020-2025, led by the online test preparation segment which is expected to grow at a compound annual growth rate of 42.3 percent over the same period, according to Ken Research.
Aakash is positioned to capitalize on this growth due to its range of offerings that combine classroom-based learning with digital products and services designed for engineering and medical entrance exams.
As Aakash prepares for its public listing, the company remains dedicated to its core values of academic excellence and student success.
The company said that Akash, as a market leader in the test preparation category, is now looking to capitalize on the opportunities offered by its public slate to enable more students to achieve their aspirations and excel in their chosen fields.
Meanwhile, the edtech company BYJU‘S plans to pay quarterly interest of about $40 million on the loan which was at the heart of the beleaguered company’s financial woes.