Byju’s nears $800m fund completion, closes payment to tutorial chain Aakash

Indian edtech company Byju’s has received most of the US$800 million fund it announced in March and completed the due payment for the acquisition of Aakash Educational Services, a local tutorial chain.

The company told Tech in Asia its fundraising efforts are “on track” and the balance from the fund is also expected soon. The payments to Aakash are closed, and the audited financial results will be announced in the next 10 days.

Byju’s co-founder Byju Raveendran / Photo credit: Byju’s

Aakash was acquired in a US$1 billion cash and stock deal in April 2021, but Byju’s had delayed the payments.

In the US$800 million funding round, Byju’s co-founder Byju Raveendran personally invested US$400 million in the company, raising his family’s stake by around 2%.

Aakash is set to transform into a hybrid edtech firm and expand rapidly across India after the deal.

See also: Byju’s aims to be profitable by FYE 2022 despite acquisition spree

In June, Byju’s laid off over 2,500 employees from its core team and subsidiary companies, namely Toppr and WhiteHat Jr, Moneycontrol reported. Byju’s said it had over 50,000 employees and that the decision was made to improve business efficiencies.

Founded in 2011 by Raveendran and his wife Divya Gokulnath, Byju’s is the world’s most valuable edtech startup at a valuation of US$22 billion. It is present in over 100 countries and serves more than 150 million students globally.