In what could be the most significant resolution to India’s edtech crisis, Byju’s global lenders are in advanced talks to acquire a roughly 30% stake in Aakash Educational Services, one of the few remaining assets of the collapsed edtech empire, in exchange for dropping all legal proceedings and allegations against Byju’s founder, Byju Raveendran. Two sources with firsthand knowledge of the situation told Reuters that the conversations are advanced, but no agreement has been reached. The settlement talks, which include Raveendran, US-based GLAS Trust, Aakash, and Manipal Health, place Aakash’s value at around $2 billion, meaning that the 30% ownership sought is worth approximately $600 million.
GLAS Trust, which acts as trustee for a consortium of institutional Term Loan B lenders, has been at the centre of a bitter multi-country legal battle with Byju’s since early 2023. The case began after Byju’s defaulted on a $1.2 billion loan it took out in 2021, the same year it paid $1 billion for Aakash. GLAS charged Raveendran of fund misuse, alleging that the corporation concealed $533 million in funds through a US-based shell subsidiary known as Byju’s Alpha. Raveendran and Byju have repeatedly denied any misconduct. The legal battle eventually spread to courts in India, Singapore, and the United States, and Byju’s declared insolvency in India in 2024. Raveendran admitted that year that the company’s valuation had reached nothing.
“BYJU’S creditors are negotiating a settlement with Aakash to take a 30% stake in the coaching institute in exchange for dropping legal action against Byju Raveendran. Settlement talks value Aakash at $2 Bn. #Byjus #Aakash #Edtech”~Inc42
Aakash: The Crown Jewel That Survived Byju’s Collapse
While Byju’s core online learning business imploded almost entirely, Aakash Educational Services has remained structurally insulated from the wreckage. It operates more than 300 coaching centres across India, providing test-preparation services for medical and engineering entrance examinations including NEET and JEE as well as school exams. The institute has a faculty of more than 5,000 experts and last reported annual revenue of approximately $254 million. That resilience is precisely why lenders want a piece of it rather than continuing to chase recovery through unpredictable bankruptcy court proceedings spread across multiple jurisdictions.
Byju’s originally acquired Aakash in 2021 at a price of around $1 billion, calling it the crown jewel of its expanding education empire. But its stake in the institute has since been heavily diluted through rights issues and subsequent investments by Manipal Education and Medical Group, which now holds approximately 60% and is the single largest shareholder. Byju’s parent entity, Think & Learn Pvt. Ltd., holds only a minority position today. By targeting a 30% stake in Aakash, lenders are effectively bypassing the messy bankruptcy process entirely and going straight for the most valuable surviving asset in the group’s portfolio.
“Byju’s global lenders are in talks to take a roughly 30% stake in Aakash Educational Services in return for dropping all legal action against Byju Raveendran, two sources with direct knowledge said. The settlement values Aakash at roughly $2 billion.”~Reuters
NCLT Defers Hearing Until July 16 as the Settlement Framework Develops:
Both legal teams have already formally informed the National Company Law Tribunal’s Bengaluru bench that a settlement framework is in the works. The panel postponed current insolvency procedures until July 16, 2026, providing all parties including Manipal, GLAS Trust, and Raveendran, an opportunity to finalize formal documentation, get permissions, and conclude legal battles. If the settlement is reached, all parties will be required to withdraw the cases they have filed against one another, bringing an end to years of litigation that has consumed vast resources on all sides and put Aakash’s own growth plans on hold.
The legal battle had, among other things, held up Aakash’s attempt to raise Rs 500 crore through a rights issue. Byju’s lenders had argued that the move would dilute their recovery prospects. The Supreme Court eventually allowed Aakash to proceed with the rights issue, instructing Byju’s parent to apply for shares only in proportion to its original holding. With the NCLT hearing now set for July 16, the next few weeks will be critical in determining whether the settlement holds together or unravels.
“Byju’s lenders are in advanced stage talks to take a ~30% stake in Aakash Educational Services, valuing it at $2 Bn, in exchange for dropping all legal cases against Byju Raveendran. NCLT hearing deferred to July 16. #Byjus #Aakash #NCLT”~Business Standard
What a Settlement Would Mean for Byju’s, Raveendran and India’s Edtech Sector:
If the purchase is completed, it will be one of the most significant resolutions to India’s startup scene and a rare clean departure from a legal and financial calamity of this magnitude. For Raveendran, a settlement would entail abandoning fraud claims and years of litigation without a court ruling. Taking an Aakash stake worth approximately $600 million would be a significant, if partial, return on the $1.2 billion being disputed by lenders. A clear ownership resolution might provide Aakash with the security it needs to pursue its own IPO goals, which have been put on hold due to legal ambiguity.
The overall scenario for India’s edtech sector is worse. Byju’s collapse has already wiped out billions of dollars in investor value and served as a warning about the dangers of rapid expansion fueled by cheap loans. The company, which once operated in 21 countries, serviced over 150 million students, and was worth more than $22 billion at its peak, now has an incompetent parent entity and a founder attempting to bargain his way out of multi-country lawsuit. The intended Aakash settlement will not salvage Byju’s just draws a line beneath it, conserving what remains of the empire’s most lasting asset for whoever ends up with it.
“Byju’s lenders, led by GLAS Trust, are seeking a 30% stake in Aakash Educational Services valued at $2 Bn as part of a settlement that would end all legal actions against Byju Raveendran across India, Singapore and the US.”~Moneycontrol
