Edtech giant BYJU’S will launch an initial public offering (IPO) of its exam preparation arm, Akash Education Services Limited, by the middle of next year, the company announced on Monday.
Akash Education Services Limited (ADSL) revenue is on track to reach Rs 4,000 crore with an EBITDA (operating profit) of Rs 900 crore for the financial year 2023-24, the company said in a press release.
“BYJU’S … will launch an initial public offering (IPO) of its subsidiary Akash Education Services Limited (ADSL) in the middle of next year,” BYJU’S said in a statement.
The Board of Directors of BYJU has made a decision to sanction the IPO formally. “The appointment of investment bankers for the IPO will be announced soon to ensure a successful and scheduled listing next year.
“The upcoming IPO will provide a significant amount of capital to strengthen Aakash’s infrastructure, expand its reach, and expand high-quality exam preparation training to more students across the country,” the statement said. The press said.
BYJU’S acquired AESL for approximately $950 million, or approximately Rs 7,100 crore, in April 2021. , Since the acquisition, Aakash has tripled its revenue over the past two years. According to Ken Research, exam preparation market revenue is expected to grow at a compound annual growth rate (CAGR) of 9.3% between 2020-2025, led by the online exam preparation segment is expected to grow at a CAGR of 42.3% during the same period.
“Aakash is uniquely positioned to capitalize on this growth with a comprehensive suite of services that combine the best of classroom learning with cutting-edge digital products and services tailored to engineering and medical entrance exams”.
Aakash has more than 325 centers currently serving more than 400,000 students across the country.