BENGALURU, India — BYJU’S, once India’s most valuable edtech startup, is reportedly engaged in settlement negotiations with its US-based lenders, who are seeking a 30% ownership stake in Aakash Educational Services in exchange for dropping all legal cases against the bankrupt company and its founder, Byju Raveendran, according to a Reuters report.
The proposed settlement comes as BYJU’S continues to battle financial distress, multiple lawsuits, and bankruptcy proceedings that have significantly impacted its operations and reputation. If the deal is finalized, it could mark a major step toward resolving the long-running dispute between the company and its creditors.
According to the report, the lenders are willing to withdraw all legal claims against BYJU’S and Byju Raveendran if they receive a 30% stake in Aakash Educational Services, one of India’s leading test preparation and coaching institutes.
BYJU’S acquired Aakash Educational Services in 2021 in a deal valued at nearly $1 billion, making it one of the largest acquisitions in India’s education technology sector. However, due to the company’s ongoing financial crisis and restructuring efforts, BYJU’S’ ownership stake has since been diluted to a minority position.
The ongoing settlement discussions reportedly value Aakash Educational Services at approximately $2 billion, reflecting the company’s strong market position and continued business performance despite the challenges faced by its parent company.
The negotiations remain confidential, and neither BYJU’S nor the group of US lenders has officially confirmed whether a final agreement has been reached.
Industry analysts believe that a successful settlement could help reduce legal uncertainty surrounding BYJU’S, allowing the company to focus on restructuring its business while providing lenders with a significant stake in one of India’s most valuable education companies.
The outcome of the negotiations is expected to play a crucial role in determining the future of BYJU’S, Aakash Educational Services, and the broader Indian edtech industry, which has witnessed increased financial scrutiny and consolidation in recent years.
