With an aim to end the long-running legal dispute with Byju's, global lenders are in advanced talks to acquire an around 30% stake in Aakash Educational Services, one of India's leading coaching chains, as part of a proposed settlement deal, according to a report.
As part of the proposed settlement, lenders are also expected to withdraw all legal cases against Byju's founder Byju Raveendran, potentially bringing an end to the dispute that has been ongoing across courts in India, Singapore and the United States, Reuters reported, citing people familiar with the matter.
US-based Glas Trust, acting as a representative for a group of lenders, had accused Raveendran and Byju's of defaulting on nearly $1 billion in loans and alleged mismanagement of funds. Byju's and Raveendran have denied any wrongdoing.
Once India's most valuable education technology startup, Byju's witnessed a sharp decline after its rapid pandemic-era expansion came under pressure. The company, which at one point operated across more than 21 countries, faced mounting financial challenges and legal battles. In 2024, Raveendran had said the company's valuation had fallen to "zero".
Sources said the settlement discussions involve Byju's, Glas Trust, Aakash and Manipal Health, with Aakash being valued at around $2 billion, according to the report.
Byju's had acquired Aakash in a $1 billion deal in 2021, but its holding has since reduced, with Manipal Health emerging as the largest shareholder. Aakash operates more than 300 centres across India, offering coaching for medical and engineering entrance exams as well as school-level preparation.
The institute has over 5,000 faculty members and reported annual revenue of around $254 million in its latest filing.
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