BYJU’s, a prominent edtech company, has announced its plans to launch the initial public offering (IPO) of its subsidiary, Aakash Education Services Ltd., in the middle of the next year. According to a statement from BYJU’s, Aakash Education Services Ltd. is projected to achieve a revenue of Rs 4,000 crore with an Ebitda of Rs 900 crore in the fiscal year 2023-24.
BYJU’s Aakash Education Services Ltd’s IPO
The board of BYJU’s has given its official approval for the IPO, and the company will soon announce the appointment of merchant bankers to ensure a well-planned and successful listing next year.
The IPO will provide significant capital infusion to strengthen Aakash’s infrastructure, expand its reach, and offer high-quality test-preparation education to a larger student population across the country, as stated in the company’s statement. BYJU’s had acquired AESL for approximately $950 million, or around Rs 7,100 crore, in April 2021. Since the acquisition, Aakash has experienced a three-fold increase in revenue over the past two years.
Ken Research predicts that the revenues in the test-preparation market will experience a compound annual growth rate of 9.3% from 2020 to 2025. The online test preparation segment is expected to grow even more rapidly, with a projected CAGR of 42.3% during the same period. BYJU’s statement emphasizes that Aakash is well-positioned to take advantage of this growth due to its wide range of offerings, which integrate traditional classroom-based learning with advanced digital products and services specifically designed for engineering and medical entrance exams. Presently, Aakash operates more than 325 centers, catering to over 400,000 students nationwide.
Aakash Educational Services Limited
Aakash Educational Services Limited (Aakash BYJU’S) is a leading educational institution in India that provides comprehensive test preparatory services to students preparing for medical and engineering entrance exams, school/board exams, NTSE, Olympiads and other foundation level exams.
Commited to the success of students since 1988, it has been recognized nationally as one of the most trusted brands in the education sector. With 300+ branches across India, 5000+ expert faculty, comprehensive study material, regular tests & assessments and an efficient doubt clearing system, backed by robust technology for an omni channel experience, Aakash BYJU’S provides one of the best coaching experiences for students aspiring to become a doctor or an engineer.
