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    Byju’s eyes $1 billion IPO for physical tutor chain Aakash

    Indian edtech giant Byju’s is engaging with bankers to put together a plan for the initial public offering of its unit Aakash, which it acquired last year, a source familiar with the matter told TechCrunch. 

    The Bengaluru-headquartered firm is looking to raise $800 million to $1 billion in the initial public offering of Aakash at a valuation of over $3.5 billion, the source said, requesting anonymity as the details are private. The startup may file the paperwork for the IPO as early as February, the source said.

    The deliberations are at an early stage, so the terms of the deal may change, the source cautioned.

    A plan for the IPO of Aakash, which Byju’s acquired for nearly $1 billion last year, comes as the group firm has postponed its own listing plan amid the global market downturn. Byju’s seriously explored going public earlier this year through the SPAC route at north of $40 billion valuation.

    Another reason why Byju’s is considering listing Aakash on Indian stock exchanges is its apprehension about the consumer awareness of the Indian unit in the global markets, a person familiar with the matter said.

    The 34-year-old Aakash runs a chain of physical coaching centres across India. Prior to the acquisition, the firm was planning to list in the country. Under Byju’s umbrella, Aakash has been profitable and growing at nearly 100% yearly and is on track to clock a revenue of over $360 million in the financial year, the startup said earlier this year.

    (More to follow)

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