Aakash Educational Services is chalking out a revamping strategy ‘Aakash 2.0’ aimed at scaling up its operations, bringing efficiency and building hybrid learning centres
On its association with Think & Learn’s BYJU’S, Aakash Educational Services’ CEO and MD Deepak Mehrotra clarified that Aakash is now a separate entity and that the recent developments surrounding the edtech major should not impact Aakash’s 2.0 operations
This comes days after Aakash downsized its workforce by laying off around 80-100 employees over the last couple of months
At a time when its investor BYJU’S
is going through an insolvency process, Aakash Educational Services is chalking out a revamping strategy ‘Aakash 2.0’ aimed at scaling up its operations, bringing efficiency and building hybrid learning centres.
This comes days after Aakash downsized its workforce by laying off around 80-100 employees over the last couple of months.
On its association with Think & Learn’s BYJU’S, Aakash Educational Services’ Deepak Mehrotra clarified that Aakash is now a separate entity and that the recent developments surrounding the edtech major should not impact Aakash’s 2.0 operations.
“We are now an independent company, having moved away from being a subsidiary of BYJU’S due to recent changes in ownership and our capital structure,” Mehrotra told Business Standard.
Notably, BYJU’s parent Think & Learn acquired AESL in 2021 for around $1 Bn in a cash-and-stock deal. However, the planned merger between the two has been withdrawn and AESL continues to operate independently under the BYJU’S umbrella.
Following the deal in 2021, the two parties have been at loggerheads in the past over the share swap. The Chaudhry family, which founded Aakash, refused to swap their shares.
Mehrotra also conveyed that a new investor, Manipal Group, will join the board.
Notably, in July, the Competition Commission of India gave a green signal to Manipal Health Systems and Ranjan Pai’s MEMG Family Office LLP for the proposed buyout of a stake in BYJU ’s-owned Aakash Educational Services.
“This transition means we are in the process of rebuilding our identity as a completely independent entity. In this context, the changes we are implementing are part of what I call Aakash 2.0.”
MEMG’s chairperson Ranjan Pai emerged as the largest shareholder of Aakash with about 40% stake in the company.
Mehrotra outlined that AESL has been battling challenges this year over controversies surrounding the NEET (National Eligibility cum Entrance Test) exam results and subsequent intervention by the Supreme Court.
However, on the performance front, Mehrotra said the firm saw a strong performance, with approximately 35-37% of the top 100 ranks achieved by Aakash students.
On the financial front, Aakash’s operating revenue likely stood at INR 2,325.1 Cr for FY23, a 63% increase from the INR 1,421.2 Cr in the previous fiscal year.
Meanwhile, BYJU’S is caught in a whirlwind of troubles. The company has been in the news for all the wrong reasons over the last year or so due to a severe cash crunch, multiple layoffs, legal cases, among others.
It is currently undergoing insolvency proceedings and some of its lenders have moved to different courts against the resolution professional appointed for its insolvency process.
