Chaudhry's Return to BYJU'S-Owned Aakash Institute Unlikely

The dynamics within BYJU’S-owned Aakash Institute reflect a shift in leadership, with a focus on strategic governance by the board and management council led by investor Ranjan Pai.

While Aakash continues to grow financially, there's a need to align operational performance with BYJU’S expectations for sustained success.

1. BYJU’S-owned Aakash Institute:

• Aakash Institute, under BYJU’S ownership, has reportedly decided against reinstating Aakash Chaudhry as CEO.
• The board and management council, along with investor Ranjan Pai, are expected to steer the company's direction and appoint a new CEO.

2. Ownership and Investors:

• Aakash Chaudhry and family retain approximately 11% ownership, while Blackstone holds 7%.
• Byju Raveendran and Think & Learn own the remainder.
• Ranjan Pai, primarily an investor now, has become the significant stakeholder.

3. Investment Details:

• In November 2022, Ranjan Pai invested around $200 million in Aakash to aid BYJU’S in clearing debts to Davidson Kempner.
•  Pai's total investment, including equity conversions, amounts to approximately $300 million.

4. Governance and Leadership:

• Pending approval from the Competition Commission of India, Ranjan Pai is expected to join the Aakash board.
• Current executive council members overseeing daily operations include Raveendran, Anup Kumar Agrawal (CBO), and Sachin Saxena (CHRO).
• Arjun Mohan, CEO of BYJU’S India, reportedly has some involvement in Aakash's operations.

5. Business Focus and Strategy:

• Sources emphasize the immediate focus on business growth and stability.
• A significant capital infusion underscores the commitment to expansion and success.

6. Financial Performance:

• Aakash Education likely exceeded INR 2,000 crore in operating revenue for FY22.
• The valuation report filed with the Ministry of Corporate Affairs projects an operating revenue of INR 2,325.1 crore for FY23.
• Despite a substantial 63% growth from FY22's INR 1,421.2 crore, actual revenue fell short of BYJU’S estimated INR 3,000 crore.