28, February, 2024
HomeBusinessManipal Group Chairman, Ranjan Pai, Elevates Stake in BYJU's Aakash: A Strategic Move in India's EdTech Landscape

Manipal Group Chairman, Ranjan Pai, Elevates Stake in BYJU’s Aakash: A Strategic Move in India’s EdTech Landscape

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Renowned billionaire and chairman of Manipal Education and Medical Group, Ranjan Pai, has made a significant stride in India’s education technology sector by acquiring a substantial 40% stake in BYJU’s Aakash Education Services Ltd. for a notable $300 million. This strategic move by Pai positions Aakash Institute at an estimated valuation of around $750-800 million, marking a substantial development in the dynamic edtech market.

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The deal was facilitated through the conversion of debt to equity from Davidson Kempner, a decision greenlit by BYJU’s parent company, Think & Learn Pvt. With this acquisition, the stake distribution in Aakash Education Services now stands at 40% for Ranjan Pai, 15% for Byju Raveendran, and 26% for Think & Learn. The remaining 18% is divided between promoters Blackstone and the Chaudhry family, founders of the company.

This move follows BYJU’s earlier acquisition of Aakash in 2021, a deal valued at approximately $1.1 billion. The financial maneuverings demonstrate the dynamism of the edtech sector and highlight the strategic partnerships shaping its landscape.

Aakash’s commendable financial performance has significantly contributed to BYJU’s overall portfolio, posting a 44% increase in topline revenue, reaching $191 million in FY22. Profits after tax also witnessed a substantial rise from $5.9 million in FY21 to $10.7 million. Beyond his involvement with Aakash, Ranjan Pai has been diversifying his startup investments, engaging in ventures with IPO-bound FirstCry, PharmEasy, and online jewelry retailer Bluestone.

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As Manipal Group’s visionary leader, Ranjan Pai’s net worth, estimated at $2.8 billion by Forbes, underscores his influential role in shaping India’s education and startup landscape. The move to enhance his stake in BYJU’s Aakash reflects a strategic commitment to the growth and evolution of the edtech sector in the country.

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