Edtech company Byju’s acquired Aakash Educational Services in a cash and stock deal in April last year for $1 Billion, for which it has delayed payments.
Byju’s was supposed to close the transaction in June but has extended the payment timeline to August, sources said, but it was delayed due to some internal reason.
Now, Byju’s said on Monday that it has completed the payment to Aakash Educational Services and received a majority of the $800 million funds.
“Our fundraising efforts are on track, and most of the $800 million has already been received. The balance is also expected soon. Our payments to Aakash are closed, and the audited financial results are going to be announced in the next 10 days”, Byju’s said in a statement.
In the fresh funding round by the company, Byju’s founder and CEO Byju Raveendran, made a personal investment of $400 million (approx. Rs 3,000 crore) of the total $800 million (almost Rs 6,000 crore).
Aakash is not the first acquisition of Byju’s. Before this, the company acquired Labin App, WhiteHatJr, and Osmo, and the latest acquisition is US-based kids learning platform Epic for $500 million.
According to the statement, the lay-off decision has been made to improve business efficiencies throughout Byju’s and its group companies.
“In order to reduce redundancies across our organisation after multiple acquisitions, we had to let go of nearly one percent of our over 50,000 strong workforces. This retrenchment was a result of a strategic decision to improve business efficiencies throughout Byju’s and its group companies. Byju’s remains a net hirer”, the company said.
Sacked employees of Byju’s have claimed that the number of laid-off employees was higher than that claimed by the company.
“With over 50,000 employees and growing, we take immense pride in our role as India’s largest job creator among startups. Byju’s continues to hire across levels for various businesses departments and functions”, the company said.