Edtech giant BYJU‘S revealed on Monday its intention to initiate the Initial Public Offering (IPO) of its test preparatory subsidiary, Aakash Education Services Limited (AESL), by the middle of next year. The announcement comes as BYJU’S continues to expand its presence in the Indian education market and solidify its position as a leading provider of digital learning solutions.
According to a statement issued by BYJU’S, AESL is projected to achieve a revenue of Rs 4,000 crore with an operational profit (EBITDA) of Rs 900 crore in the fiscal year 2023-24. The board of BYJU’S has given its official approval for the IPO, signifying the company’s commitment to taking AESL public.
“The upcoming IPO will provide a significant capital infusion to bolster Aakash’s infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation,” stated BYJU’S. The move reflects BYJU’S dedication to expanding the accessibility of quality education through innovative digital solutions.
BYJU’S acquired AESL in April 2021 for approximately USD 950 million, equivalent to about Rs 7,100 crore. Since the acquisition, Aakash has demonstrated remarkable growth, with its revenue tripling over the past two years. This success has been fueled by Aakash’s comprehensive test-prep offerings, combined with BYJU’S vast experience and expertise in the education sector.
The decision to launch the IPO comes at an opportune time, as the test-preparation market is witnessing robust growth. According to a study conducted by Ken Research, revenues in the test-prep market are projected to grow at a compound annual growth rate (CAGR) of 9.3 percent from 2020 to 2025. The online test preparation segment, in particular, is expected to experience a significant CAGR of 42.3 percent during the same period.
With its extensive reach and cutting-edge technology, BYJU’S is well-positioned to capitalize on this market growth. By taking AESL public, the company aims to further strengthen its presence in the test-preparation sector and offer a wider range of educational opportunities to students across the country.
To ensure a successful IPO, BYJU’S is in the process of appointing merchant bankers, with an official announcement expected soon. This strategic move is designed to facilitate a well-planned listing and optimize the opportunities presented by the IPO. The company’s focus remains on creating a seamless transition from private ownership to a publicly traded entity.
BYJU’S IPO for AESL marks another milestone in the company’s journey to revolutionize the Indian education system through digital learning. By leveraging technology, personalized learning approaches, and strategic acquisitions like AESL, BYJU’S has emerged as a frontrunner in the edtech space.
As the demand for online education continues to surge, BYJU’S remains committed to transforming the learning landscape by offering innovative and engaging educational solutions. The IPO of AESL represents a significant step in realizing this vision, as it will provide the necessary resources to scale up operations, expand infrastructure, and cater to the evolving needs of students across India.
In conclusion, BYJU’S has announced its plans to launch the IPO of Aakash Education Services Limited, its test preparatory arm, by the middle of next year. The move reflects BYJU’S commitment to extending its reach in the education sector and providing high-quality test-prep education to a larger number of students. With the appointment of merchant bankers on the horizon, BYJU’S is poised for a successful IPO that will fuel the growth and expansion of AESL, solidifying its position as a prominent player in the edtech industry.
