BlackStone Acquires 37.5% Stake In Aakash Educational Services
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BlackStone Acquires 37.5% Stake In Aakash Educational Services

Aakash Educational Services- Next Big Brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: October-31-2019 03:06 PM
  • Aakash is one of India’s largest test-preparation businesses, assisting class 8-12 students in medical, engineering and other competitive exams. The company has more than 200 centers in 130 cities., employing over 2,200 teachers to help train more than 250,000 students.
  • Blackstone Group LP, a private equity firm, will invest in omnichannel education and test preparation firm Aakash Educational Services Ltd, the PE company said on Wednesday.

Blackstone Group LP, a private equity firm, will invest in omnichannel education and test preparation firm Aakash Educational Services Ltd, the PE company said on Wednesday.

Aakash is one of India’s largest test-preparation businesses, assisting class 8-12 students in medical, engineering and other competitive exams. The company has more than 200 centers in 130 cities., employing over 2,200 teachers to help train more than 250,000 students.

Although Blackstone did not disclose the transaction’s financial details, one person aware of the deal, asking for anonymity, said the PE firm will pick up a 36.5 percent stake in Aakash for over $500 million valuations of $1,350 crore.

Amit Jain, managing director, Blackstone, said it would help the company complement the strong physical network of Aakash by increasing its digital segment to create India’s largest omnichannel test preparation business.

“Unlike most other games, the goal and business model of Aakash was to bring high-quality test preparation education closer to the home of the student, rather than the student who had to move for it. Its 200 pan-India centers currently allow this decentralized delivery, driven by centralized academic pedagogy, “he said.

Amit Dixit, director, Indian private equity, Blackstone, said the PE company will look at organic and inorganic growth to grow Aakash’s business. “Live tutoring has proven to be an effective method internationally, whether in physical or virtual classrooms, to produce consistent results in standardized tests. In India, Aakash was a leader in this model, delivering outstanding results in NEET and JEE exams.

Aakash had an initial public offering before the stake sale to Blackstone and had submitted it’s so-called red herring prospectus to the market regulator in July 2018. It did not move forward with the plans, though.

Aakash reported revenue of some 981.1 crores for the financial year 2018, compared to revenue of some 729.6 crores in the previous financial year, data from its IPO filings show. In fiscal 2018, the company’s profit stood at approximately 160.1 crores, growing significantly in the previous fiscal year from some 63.5 crores.

Over $13 billion has been invested in India by the New York-based alternative asset manager, split almost evenly between PE and real estate deals.

While at the end of September their real estate investments stood at $6.6 billion, private equity assets across 15 firms stood at $6.2 billion.

Recently, Blackstone closed the deal to buy the Global Village Technology Park based in Bengaluru. The sale of the 90-acre tech park was finalized at Rs. 2,800 crores according to the people close to the deal.

About the author

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career.
Highly enthusiastic about brands and startups, he aims to be a travel content creator.

9113327413 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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