BYJU’s planning to bring the Initial Public Offering(IPO) of its subsidiary Aakash Educational Services. It was acquired by BYJU’s for $1 Billion in 2021. Divya Gokulnath, co-founder of BYJU’s confirms that they are preparing to launch the Aakash IPO at the massive valuation of $3.5 to $4 Billion. The upcoming IPO is expected to be $1 Billion, which will be listed in the stock market in the forthcoming months. In November, there were rumours of BYJU’s planning to roll out the IPO of Rs 8000 crore in the first half of 2023.
Divya Gokulnath said, “We would like to list it in India, and we are working on it. We have been planning it for a few months now; however, there is no timeline I can give you right now.”
According to the Bloomberg report, the Edtech giant is planning to raise a whopping amount of $500 Million and is in talks with investors. The major name that comes out is the Texas Pacific Group Capital. Divya clarifies that the company’s primary goal, for now, is to expand the offline business model by opening more tuition centres.
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In the last year, BYJU’s also acquired a loan of around Rs 300 crore from the principal activities of Aakash. The company also believes that Aakash is a profitable institutional brand that Indians better understand. BYJU’s doesn’t disclose the exact day and time for the public listing of its subsidiary. However, there are also questions about the market valuation disclosed by the Edtech giant before the upcoming IPO. Since BYJU’s is not listed in the stock market, the decision to bring the Aakash IPO raises various questions. There is no plan from BYJU’s side to launch its own IPO, as its co-founder confirmed the company’s market valuation of $22 Billion. Investors have to wait a bit as the exact date of Aakash’s IPO hasn’t been revealed yet.
