Billionaire behind Manipal Group becomes largest stakeholder in BYJU'S Aakash
What's the story
Ranjan Pai, the billionaire chairman of Manipal Education and Medical Group, has bought a 40% stake in BYJU'S Aakash Education Services Ltd. for $300 million.
This deal values Aakash Institute at around $750-800 million, a bit lower than its nearly $1 billion sale to BUJY's.
The transaction was made possible after BYJU's parent company, Think & Learn Pvt., approved the conversion of debt to equity from Davidson Kempner.
Sale details
Stake distribution of Aakash after Pai makes inroads
Following this acquisition, Pai now owns 40% of Aakash Education Services, while Byju Raveendran holds a 15% stake and Think & Learn has a 26% share.
The remaining 18% is split between promoters Blackstone and the Chaudhry family, who founded the company.
BYJU'S had acquired Aakash in 2021 through a cash-and-stock deal worth about $1.1 billion, which included 70% cash for Aakash shareholders and Blackstone payouts, while the other 30% was an equity-swap deal.
What Next?
Aakash's financial performance and Pai's startup investments
Aakash has been a profitable addition to BYJU'S portfolio, consistently posting gains.
In FY22, the company saw a 44% increase in topline revenue, reaching $191 million, and a jump in profit after tax from $5.9 million in FY21 to $10.7 million.
Besides his investment in Aakash, Manipal Group boss Pai has been expanding his start-up portfolio by acquiring stakes in IPO-bound FirstCry, PharmEasy, and online jewelry retailer Bluestone.
As per Forbes, Pai's net worth amounts to $2.8 billion.