Byjus’ loses control of Aakash Institute to an American investor due to financial misconduct

American investment firm Davidson Kempner takes control of Aakash Education Services from Byjus which it acquired for $1 bn amidst much fanfare. It was the best performing division of Byjus.

Moreover, Kempner also accused Byjus’ of financial misconduct and fraud. The report stated that Byjus’ misused the money loaned to Aakash Education Services.
Kempner had invested $250 mn in 2023 for Aakash and was about to invest an additional $750 mn but after the unravelling of the financial misconduct not only decided to refrain from further investing but also froze the Aakash account and took control of the star performing subsidiary from the controversial and beleaguered Indian edtech.

Byjus’ acquired Aakash Education Services which was a highly successful medical & engineering entrance exam coaching classes chain in India from The Blackstone Group and JC Choudhary Family in 2021. However he delayed the payments to both for months and was not paid until 2022 more than a year after the acquisition.

Davidson Kempner is a New York based investment firm with over $36 bn AUM.