Ranjan Pai ends BYJU'S-Kempner dispute with Rs. 1,400cr debt deal
Manipal Group's Ranjan Pai has resolved issues between BYJU'S and investment management company Davidson Kempner, by purchasing the latter's debt investment in the edtech firm for Rs. 1,400 crore. The deal, which was finalized today (November 10), also grants Pai a seat on the board of Aakash, a BYJU'S subsidiary. This move brings closure to the conflict between BYJU'S and Davidson Kempner, which was linked to covenants on Aakash.
Pai's history with BYJU'S and recent investments
Pai initially invested in BYJU'S back in 2011 through his venture capital fund Aarin Capital, obtaining roughly one-third of the company. Over the past decade, as BYJU'S raised more than $5 billion, Aarin Capital exited the company with substantial returns. Recently, Pai relinquished a controlling stake in Manipal Hospitals to Singapore's Temasek in the largest transaction ever by a private equity fund in India's healthcare sector.
Resolution of dispute and impact on Aakash Educational Services
The agreement with Pai concludes the ongoing dispute between Davidson Kempner and BYJU'S, which began after a technical default by BYJU'S on a $250 million loan obtained from the firm in May. This deal also lifts the pledge on Aakash shares that BYJU'S had provided as collateral for the Davidson Kempner loan. Aakash Educational Services, which BYJU'S acquired for nearly $1 billion in 2021, has been the company's most successful acquisition to date.
