BYJU’S Announces IPO Launch for Aakash Education Services in 2023-24
- ByStartupStory | June 6, 2023
Edtech giant BYJU’S revealed its plans to launch the Initial Public Offering (IPO) for its subsidiary, Aakash Education Services Limited (AESL), in the middle of next year. The announcement comes as AESL projects its revenue to reach Rs 4,000 crore and an operational profit (EBITDA) of Rs 900 crore for the fiscal year 2023-24.
BYJU’S stated, “The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year.” The company’s board has officially sanctioned the IPO, which will provide substantial capital infusion to enhance Aakash’s infrastructure and expand its reach to offer high-quality test-prep education to more students nationwide.
In April 2021, BYJU’S acquired AESL for approximately USD 950 million (Rs 7,100 crore), and since then, Aakash has witnessed a remarkable three-fold increase in revenue over the past two years. With over 325 centers currently serving more than 400,000 students across the country, Aakash is well-positioned to capitalize on the projected growth in the test-preparation market.
The test-prep industry is expected to experience a compound annual growth rate (CAGR) of 9.3% between 2020 and 2025, driven by the online test preparation segment, which is anticipated to grow at a CAGR of 42.3% during the same period. Aakash’s comprehensive range of offerings, combining classroom-based learning with cutting-edge digital products and services tailored for engineering and medical entrance exams, positions the company to tap into this growth.
The IPO launch is a significant milestone for BYJU’S and AESL, reflecting their commitment to expanding access to quality education and further strengthening their presence in the edtech sector.
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