Ranjan Pai Buys Rs 1,400 Cr Byju’s Debt


Ranjan Pai, Chairman of Manipal Education and Medical Group, has purchased a Rs 1,400 crore debt in Aakash Educational Services, which is a test preparation unit of Byju’s. This deal will assist Byju’s in repaying a loan obtained from Davidson Kempner Capital Management, a lender based in the United States.

Of the Rs 1,400 crore being paid to the lender, Rs 800 crore is the loan amount and the remaining Rs 600 crore is in interest. Pai has joined Aakash’s board. In May, the Bengaluru-based firm raised USD 250 million ( about Rs 2,000 crore) by offering a portion of Byju Raveendran’s equity in Aakash as collateral. Pai’s investment in Aakash is linked with Aakash Chaudhry, it’s co-founder and could result in him becoming the CEO of the test prep unit. This arrangement is likely related to the stock-swap deal between Aakash and Byju’s parent company, Think and Learn, following Aakash’s acquisition.

Byju’s acquired Aakash for approximately USD 950 million in 2021, with the majority paid in cash. The remaining portion was meant to be adjusted against Think and Learn’s equity.

Byju’s is considering selling two of its holdings, Epic and Great Learning, to generate USD 800 million and settle a USD 1.2 billion term loan B. Recent financial results for the fiscal year 2021-22 show that the core business earned Rs 3,569 crore in total income, an increase from Rs 1,552 crore the previous year. The EBITDA loss decreased to Rs 2,253 crore from Rs 2,406 crore in the previous financial year. The company did not disclose the net loss from its core business and did not provide consolidated revenue and profit/loss numbers for FY22.

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