Byju’s says revenue of Aakash is on track to reach Rs 4,000 crore with an EBITDA of Rs 900 crore in the fiscal year 2023-24
Edtech company Byju’s said it will launch the initial public offering (IPO) of its subsidiary, Aakash Education Services Limited (AESL), by the mid of the next year. The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year.
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“The board of Byju’s has granted its official sanction for this pivotal undertaking. The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year. The upcoming IPO will provide a significant capital infusion to bolster Aakash’s infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation,” Byju’s said in a statement.
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According to a Bloomberg report, Byju’s is also planning to make a quarterly interest payment of around $40 million on a loan. The report said the company expects to pay the amount on Monday to meet the June 5 deadline. In case Byju’s fails to pay the $40 million interest payment, it will mean the $1.2 billion loan will default, according to the report. The loan is the largest unrated loan by a startup ever.
Byju’s in the statement also said that since the acquisition, Aakash has benefitted from multiple synergies with Byju’s that have accelerated its growth — clocking a three-fold increase in revenue in the last two years. AESL’s revenue is on track to reach Rs 4,000 crore with an Ebitda of Rs 900 crore in the financial year 2023-24.
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“Test-prep market revenues are predicted to grow at a CAGR of 9.3 per cent over 2020-2025, led by the online test preparation segment which is predicted to grow at a CAGR of 42.3 per cent over the same duration, as per Ken Research. Aakash is uniquely positioned to capitalize on this growth due to its comprehensive range of offerings that combine the best of classroom-based learning with cutting-edge digital products and services tailored for engineering and medical entrance exams,” it said.
