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Byzoos clears $230 million payment to Blackstone for $1 billion Akash deal • Technology Flow

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Byjus has cleared all of its dues to Blackstone by paying the global investment giant $234 million for its $1 billion acquisition of Aakash, a source familiar with the matter told Technology Flow, citing one of the criticisms leveled at the Indian edtech giant in recent months.

The Bangalore-headquartered startup, valued at $22 billion, has pushed back some payments for its roughly $1 billion acquisition of the physical education chain last year, citing regulatory clearance. Blackstone, an investor in Byjus, held around 38% stake in Aakash before the acquisition.

Baiju Ravindran, founder and chief executive of the renowned edtech startup, said in an interview with Technology Flow earlier this month that Baijus and Blackstone have decided to process payments from each other later. The Indian startup cleared the dues this week, the source said, requesting anonymity because the details are private.

Blackstone and Byzoo did not immediately respond to a request for comment Friday evening.

Epic, an Indian startup that offers online and offline learning services to students from kindergarten preparing for competitive college entrance exams, has spent more than $2.5 billion over the past two years to acquire several companies, including US-based reading platform Epic, Coding Suite. Tynker, India-based Great Learning, GradeUp, Topper and Austria’s GeoGebra.

It has also made a bid to acquire publicly listed edtech firm 2U, Ravindran confirmed in an earlier interview.

Earlier this month, the Indian startup disclosed its financial accounts for the year ending March 2021 after a long delay. Byjus said it generated revenue of $305.6 million in the fiscal year ended March 2021 and widened its losses to $577.4 million. Ravindran said 40% of FY21 revenue – due to consumption and credit sales period – has been deferred. Next year.

The startup, which counts BlackRock, Tiger Global, Lightspeed Venture Partners and Sequoia India among its backers, generated gross revenue of $1.258 billion (unaudited) in the fiscal year ended March this year. Between April and July, the startup recorded $570 million in revenue.

Byjus is looking to go public next year. Ravindran had said in an earlier interview that Byjus is closely monitoring macro market conditions and will file for an IPO in nine to 12 months. “I don’t think the markets will change this year,” he said.

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