It Is Unlikely That Chaudhry Will Return To Lead Aakash Institute, Which Is Now Owned By Byju's.

Bengaluru, India: BYJU'S-owned Aakash Institute appears to be taking a new direction in its leadership. Recent reports suggest that Aakash Chaudhry, co-founder of Aakash, will not be returning as CEO.

Focus on Business Growth, New Leadership Anticipated

The Aakash board, management council, and Ranjan Pai are expected to work collaboratively to guide the company's future trajectory. This shift comes after initial discussions regarding the promoters potentially resuming operational control.

Ranjan Pai Emerges as Primary Investor

With Ranjan Pai's recent investments, he has become the largest shareholder in Aakash. The ownership structure is currently divided, with the Chaudhrys holding approximately 11%, Pai holding around 30% (including equity conversions), Blackstone holding 7%, and the remaining stake belonging to BYJU'S founder Byju Raveendran and Think & Learn.

Pai's Investment Strengthens Aakash's Position

In November 2022, Pai invested $200 million in Aakash to help BYJU'S settle an outstanding loan. Combined with previous investments and equity conversions, Pai's total investment is estimated to be around $300 million.

Following regulatory approval from the Competition Commission of India, Pai is expected to join the Aakash board. Currently, the executive council overseeing Aakash's daily operations includes Raveendran, Think & Learn founder, Anup Kumar Agrawal (CBO) of Aakash, and Sachin Saxena (CHRO). Additionally, Arjun Mohan, CEO of BYJU'S India, is reported to be involved to some extent.

Prioritizing Growth and Business Operations

"The primary focus now is to concentrate on building the business," a source stated. "Significant capital has been invested, and growth is paramount."

Aakash Reports Revenue Growth

Aakash Education's operating revenue for the financial year ending March 31, 2023, is likely to have crossed INR 2,000 crore, as reported by Inc42. Their valuation report filed with the Ministry of Corporate Affairs projects an operating revenue of INR 2,325.1 crore for the same period.

This would represent a significant 63% increase compared to the INR 1,421.2 crore reported in FY22. However, it appears Aakash fell short of BYJU'S initial projections of INR 3,000 crore in revenue for FY23.

Looking Ahead: New Leadership and Continued Growth

With Ranjan Pai assuming a more prominent role and a new CEO expected to be appointed, Aakash Institute appears poised for a new chapter. The company's focus on operational excellence and continued growth will be crucial for its success in the competitive coaching institute landscape.