SUMMARY
The board and management council of Aakash, in collaboration with Ranjan Pai, are expected to take the lead in guiding the business forward
This marks a notable shift from previous discussions where the promoters were considering a return to lead daily operations
Aakash Education’s operating revenue likely crossed the INR 2,000 Cr mark in the financial year ended March 31, 2023
BYJU’S-owned Aakash Institute has reportedly decided not to bring back Aakash Chaudhry as chief executive officer (CEO) at the brick-and-mortar coaching firm.
The board and management council of Aakash, in collaboration with Ranjan Pai, are expected to take the lead in guiding the business forward and are likely to appoint a new chief executive, ET reported.
This marks a notable shift from previous discussions where the promoters were considering a return to lead daily operations. Pai has now emerged as the primary investor in the company.
The Chaudhrys still own approximately 11% ownership in Aakash, while investment fund Blackstone holds 7%. The remainder of the stake is owned by Byju Raveendran and Think & Learn.
In November 2022, Ranjan Pai invested approximately $200 Mn in Aakash to assist BYJU’S in clearing its outstanding loan to Davidson Kempner. It is reported that Pai’s total investment in Aakash, including equity conversions finalised last year, amounts to around $300 Mn.
Once the investment proposal receives clearance from the Competition Commission of India, Pai is anticipated to join the Aakash board. Presently, the executive council overseeing the daily operations of the coaching centre business includes Raveendran, the founder of Think & Learn, Anup Kumar Agrawal (CBO) of Aakash and Sachin Saxena, the CHRO.
Arjun Mohan, the CEO of BYJU’S India, is also reportedly involved to some extent in the operations of Aakash.
“The focus right now is to put the heads down and build the business. If this doesn’t remain, nothing else will matter. Significant amount of capital has been invested for it to grow now,” a source said as quoted in the report.
Aakash Education’s operating revenue likely crossed the INR 2,000 Cr mark in the financial year ended March 31, 2023, Inc42 reported earlier. The coaching institute is likely to report an operating revenue of INR 2,325.1 Cr in the financial year, according to Aakash’s valuation report filed with the Ministry of Corporate Affairs.
The reported increase in operating revenue from INR 1,421.2 Cr in FY22 would mark a 63% growth. However, it appears that the actual operating revenue in FY23 fell short of BYJU’S estimates, as it did not reach the projected INR 3,000 crore.
