Byju's lenders seek 30% stake in Indian education group in settlement, sources say

• Settlement talks value Aakash Educational Services at roughly $2 billion; the institute operates 300+ centers across India with annual revenue of approximately $254 million
• Byju's acquired Aakash for $1 billion in 2021, but its stake has since been diluted to a minority position, with Manipal Health now the largest shareholder
• The dispute involves U.S.-based Glas Trust demanding $1 billion in unpaid loans and spans courts in India and the United States following Byju's bankruptcy filing in 2024

Summary

Byju's global lenders are in advanced settlement talks to acquire approximately 30% stake in Aakash Educational Services, a partly-owned Indian coaching institute, in exchange for dropping all legal action against founder Byju Raveendran.

Key Details:

The settlement would resolve a protracted dispute between Byju's and U.S.-based Glas Trust, which represents a group of lenders demanding $1 billion in unpaid loans. The conflict began in early 2023 and escalated after Byju's filed for bankruptcy in India in 2024. Glas Trust has accused Raveendran of mismanagement, allegations he has denied.

Company Background:

Once India's most high-profile startup, Byju's operated in over 21 countries and gained prominence during the COVID-19 pandemic through online education offerings. However, the company imploded in 2024, marking a dramatic fall for Raveendran, who rose from teacher to startup billionaire.

Aakash Educational Services:

• Acquired by Byju's for $1 billion in 2021
• Byju's stake has since been diluted to minority ownership
• Manipal Health is currently the largest shareholder
• Operates 300+ test preparation centers across India for medical and engineering entrance exams
• Employs over 5,000 faculty members
• Annual revenue: approximately $254 million
• Current valuation in settlement talks: roughly $2 billion

Market Implications:

The settlement would resolve multi-jurisdictional legal disputes spanning India, Delaware, and the U.S., potentially providing closure to one of India's most notable startup failures while offering lenders recovery through equity in a valuable education asset.