Operating revenue during the period grew 45% to Rs 1,421 crore, as per the company’s filings with the Ministry of Corporate Affairs on Saturday. It has not yet filed its FY23 numbers.
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Close to 88% of Aakash’s operating revenue came from coaching fees received from students at Rs 1,282.3 crore, the filings showed. Revenue from the franchise’s part of its business was about Rs 139 crore.
Embattled edtech major Byju’s had acquired IPO-bound Aakash Institute for $950 million in 2021 as part of its aggressive mergers and acquisitions strategy, in what has been its largest acquisition.
Aakash Institute offers coaching classes and material for medical and engineering school entrance tests such as NEET and IIT-JEE, as well as Olympiad and NTSE and basic classroom curriculum for school students.
The company reported a 35% rise in its employee-related expenses, its largest cost head, at Rs 722.8 crore. This accounted for about 54% of overall expenses, which went up 34% to Rs 1,331.8 crore.
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In June 2023, Byju’s had said its board had cleared an initial public offering (IPO) proposal to list Aakash Institute in mid-2024. “Aakash is uniquely positioned to capitalise on this growth due to its comprehensive range of offerings that combine the best of classroom-based learning with cutting-edge digital products and services tailored for engineering and medical entrance exams,” Byju’s had said in a statement.Byju’s founder Byju Raveendran has been struggling to raise new financing for the group that is facing troubles including lawsuits and legal notices from multiple stakeholders, valuation troubles and delayed financial reporting, among others.
Separately, in October, ET reported first that Aakash Chaudhry — the promoter of Aakash Institute — was set to return as the chief executive officer of the company amidst a shareholder struggle, as part of a broader arrangement being finalised with Byju’s.
In the same month, ET reported that Manipal Education and Medical Group chairman Ranjan Pai may invest as much as $250-300 million in Aakash Institute, to acquire a larger stake in the brick-and-mortar business.
Last week, BlackRock, the world’s largest asset manager, slashed the implied valuation of Byju’s to about $1 billion, down more than 95% from $22 billion at the time of its last fundraising in October 2022.