According to the newest reports, Indian ed-tech startup, Byju’s, should pay 1983 crore Indian rupees to Blackstone, a world investment management company, within 8 days. The payment to Blackstone is a component of the acquisition of Aakash Educational Services by Byju’s in 2021.
Byju’s which was founded in 2011 as a web educational platform became one in every of the foremost successful ed-tech startups within the world with a complete valuation of over 20 billion dollars. Byju’s which has been longing some financial and economic crises over the last 12 months decided to amass Aakash Educational Services Limited (AESL) in 2021.
Aakash which has been providing comprehensive test preparatory services to Indian students for the past a few years has been a champ in camera coaching centres for entrance exams like NEET and JEE.
The acquisition of Aakash by Byju’s is structured in such how that promoters of Aakash and Blackstone, which may be a major shareholder in AESL, would sell their stake within the company to Byju’s. The cash and stock deal which is worth nearly 950 million dollars is one in every of the most important acquisition deal within the history of the Indian ed-tech sector.
A report released by Moneycontrol state that Byju’s was presupposed to pay Blackstone 1983 crore rupees in June 2022 as a part of closing the acquisition deal. for a few unknown reason, the June deadline was deferred to September 23, 2022. Lawyers who have knowledge about the laws and regulations of acquisition deals told Moneycontrol that Byju’s will must request the bank of India for an extension if they’re ineffectual to pay 1983 crore to Blackstone by September 23rd.
Before the acquisition by Byju’s, Blackasdonte had a 37.5% stake in Aakash Educational Services Limited which was purchased by the international investment firm in 2019.
Following the culmination of the acquisition deal, both founders of Aakash and Blackstone will become minority shareholders in Byju’s.
For the previous couple of months, there has been a general discussion within the public regarding the financial health of Byju’s. The financial statements of the ed-tech company for the previous fiscal year were only released some hours ago.
The latest plan and reports which were accessed by media outlets showed that the net education platform suffered a large loss of quite 4000 crores within the fiscal year 2021. The loss of the corporate has increased by quite 17 times over the last 12 months. Changes within the accounting process and a few others factors associated with the realisation of cash are said to be major factors for Byju’s suffering huge losses within the twelvemonth.