Aakash Institute Among “Best Acquisition”, WhiteHat Jr a “Business Mistake,” Says Byju Raveendran
Byju Raveendran, the founder of BYJU’S, has characterized the acquisition of Aakash Institute as one of the company’s “best acquisitions,” while expressing regret over the acquisition of WhiteHat Jr, acknowledging it as a “business mistake.”
“It’s one of our best acquisitions now. At that point in time, that was 5 percent of the valuation of Think and Learn. And we thought that there is a huge opportunity to what was available only to a few students in big metros, making the same kind of options available to small towns. So, we, after the acquisition, actually took Akash (Institute) to small towns. What was reaching out to only a few parts of India, the same program, we made it available to 300-plus centers within 18 months of taking over. It was actually one of our best acquisitions,” Raveendran said during an interview.
In April 2021, BYJU’s made the significant move of acquiring Aakash Educational Services Ltd (AESL) for nearly USD 950 million. The deal, structured as a cash-and-stock transaction, marked one of the largest acquisitions within the Indian startup landscape. It comprised a 70 percent cash component and a 30 percent equity component.
Raveendran further commented on the narrative surrounding acquisitions, stating, “Today, all this narrative around acquisitions – like we made mistakes – like when you make six big acquisitions, four of them are doing well but everyone talks about the two, and that’s how it works, right?”
In discussing the acquisition of WhiteHat Jr, a platform focused on coding and coding-related skills for children, Raveendran admitted it was a ‘business mistake,’ despite its unique concept.
“…those are all business mistakes. Now I am like today; even though that came through an acquisition, the concept of WhiteHat Jr, what would have really changed is teachers in India teaching students anywhere in the world who wanted to learn math from Indian teachers. Like, that’s a huge opportunity lost,” he mentioned.
The founder of one of the most valuable edtech companies in the country, valued at approximately USD 22 billion in 2022, acknowledged that the company committed “some business mistakes” when it expanded “too fast” to 21 countries, driven by the ‘mandate’ from world-class investors.
Raveendran disclosed that the strategic decisions were made collectively with board members, including investor and founder directors, and were not motivated by desperation, as the company had previously secured USD 5 billion in funding.
The Bengaluru-based edtech company currently faces financial challenges, regulatory scrutiny, and legal conflicts. Think & Learn Pvt Ltd (TLPL), the parent company of BYJU’S, has been subjected to insolvency proceedings.
