Byju’s, the top education technology startup in India, revealed on Monday, June 5 that it intends to carry out the initial public offering (IPO) of its test preparation subsidiary Aakash Education Services Limited by the middle of 2024.
All We Know
The board of Byju also officially approved the commencement of the IPO. The announcement outlined the plan’s timeframe and stated that the nomination of the merchant bankers for the IPO would shortly be made public to move the listing process along.
According to the company’s announcement, Aakash Education Services Limited (AESL) is expected to have revenue of $4,000 million and an operating profit of $900 million in the fiscal year 2023–23.
The news is made just before Byju has to pay a $40 million interest payment due on loan obtained in November 2021.
Since the firm started negotiating the terms of its debt with its creditors in December 2022, Byju has been at odds with them.
A Bright Future For Test-Prep Market
In April 2021, Byju’s purchased AESL for around $950 million, or roughly 7,100 crores. After the transaction, Aakash’s profit increased dramatically during the following two years. It saw a threefold rise in earnings.
As per Mint, revenues from the test preparation business are expected to increase in the near future between 2020 and 25 at a compound annual growth rate (CAGR) of 9.3%. The online test preparation category, which is anticipated to grow at a CAGR of 42.3% over the same period, was the driving force behind the sector’s growth.
Aakash serves more than 4,00,000 students in India for their exam preparations for examinations like NEET, IIT-JEE, etc., with more than 325 centers.
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