Byju’s global lenders are in advanced discussions to acquire roughly a 30% stake in Aakash Educational Services, one of the Indian edtech company’s key partially owned assets, while simultaneously agreeing to withdraw all ongoing legal action against founder Byju Raveendran.
Byju’s, once a dominant global edtech player operating in over 21 countries, rose to prominence during the Covid-19 pandemic due to its online learning platforms.
However, its financial troubles began in early 2023 following a dispute with US-based lenders over unpaid loans.
Glas Trust, representing a group of US lenders, accused Raveendran of mismanagement and sought repayment of around $1 billion after Byju’s entered bankruptcy proceedings in India in 2024.
Both Raveendran and Byju’s have denied all allegations of wrongdoing. The dispute subsequently escalated into multi-jurisdictional litigation spanning India, Singapore, and the United States.
According to the sources, the lenders are now close to finalising a comprehensive settlement. Under the proposed arrangement, they would take a significant minority stake—approximately 30%—in Aakash Educational Services, a major offline test-preparation institute in India.
As part of the settlement, all parties involved are expected to withdraw legal cases filed against each other, effectively ending years of litigation.
Byju’s had originally acquired Aakash in a $1 billion deal in 2021. However, due to subsequent financial restructuring and stake dilution, Byju’s holding has been reduced to a minority position. Currently, Manipal Health is the largest shareholder in Aakash Educational Services.
Aakash operates more than 300 coaching centres across India, offering preparation services for medical and engineering entrance exams as well as school-level examinations.
The institute employs over 5,000 faculty members and reported annual revenues of approximately $254 million in its latest financial disclosure.
The ongoing settlement discussions reportedly involve Byju Raveendran, Glas Trust, Aakash Educational Services, and Manipal Health. The valuation of Aakash under the proposed agreement is pegged at around $2 billion.
If completed, the deal would mark one of the largest resolution efforts in India’s edtech sector, effectively concluding one of the most high-profile startup legal battles in recent years.
