Global lenders of Byju’s are reportedly in advanced discussions to acquire around a 30% stake in Aakash Educational Services as part of a broader settlement that could also end all legal disputes involving founder Byju Raveendran.
Settlement Talks Gain Momentum
According to sources familiar with the matter, the lenders are negotiating a deal that would allow them to exit long-running litigation in exchange for a significant equity stake in Aakash, one of Byju’s key education assets.
If finalised, the agreement would also lead to the withdrawal of all legal cases filed against Byju Raveendran and other parties involved in the dispute.
Long-Running Financial and Legal Battle
The dispute began after Byju’s faced financial stress following its rapid global expansion during the pandemic period. The situation escalated in 2023 when U.S.-based creditors raised concerns over loan repayments.
Glas Trust, representing a group of lenders, accused Byju Raveendran of mismanagement and sought nearly $1 billion in unpaid loans after the company entered insolvency proceedings in India in 2024. Both Byju’s and its founder have denied any wrongdoing.
From Rapid Growth to Financial Crisis
Once valued as one of India’s most prominent edtech success stories, Byju’s expanded to over 21 countries and became a household name during the COVID-19 boom in online learning.
However, the company’s rapid rise was followed by a sharp downturn, culminating in bankruptcy proceedings and prolonged legal battles across India, Singapore, and the United States.
Byju Raveendran had earlier remarked that the company’s value had effectively fallen to zero amid the crisis.
Aakash at the Centre of the Deal
The proposed settlement focuses on Aakash Educational Services, which Byju’s acquired in a $1 billion deal in 2021. Since then, its ownership structure has changed, with Manipal Health emerging as the largest shareholder.
Aakash currently operates more than 300 centres across India and serves students preparing for medical and engineering entrance exams. The company reports annual revenue of around $254 million.
Under the proposed arrangement, Aakash is valued at approximately $2 billion.
Outcome of the Proposed Agreement
If the deal goes through, lenders would gain a significant stake in Aakash while exiting litigation against Byju Raveendran and other stakeholders. The settlement would mark one of the most significant resolutions in India’s edtech sector crisis.
Negotiations are still ongoing, and none of the parties involved have officially commented on the development.
