Private Equity

Other Private Equity/Strategic Investments

Edtech co. Byju’s lenders seek 30% stake in Aakash at $2-B valuation to settle legal battle

Inc42  

Global lenders of the beleaguered edtech firm Byju’s are in talks to acquire a 30% stake in Aakash Educational Services, an offline coaching institute partly owned by the group, at an enterprise valuation of $2-B.The proposed equity transfer is intended to resolve a long-standing legal dispute between the edtech firm and its Term Loan B lenders. As part of the settlement, lenders plan to drop all legal actions and allegations against the firm’s founder Byju Raveendran. The ongoing conflict has involved legal proceedings across India, Singapore, and the US.The dispute originated in early 2023 when US-based GLAS Trust accused the founder of fund misappropriation regarding a $1-B loan extended in 2021. Recently, both parties testified before the Bengaluru bench of the National Company Law Tribunal that they are working toward a settlement agreement, with the court deferring the case for a further hearing on July 16.

Between Aug 2019 and Nov 2023, Aakash Educational Services had attracted about $ 658 M from Blackstone and MEMG Family Office.