Blackstone backs India’s Aakash Educational

The investment has delivered the private equity firm a 37.5% stake and values the company at around $500 million, according to The Economic Times. It extends a ramp-up in PE and VC interest in India’s online test preparation segment, which has seen operators such as Byju’s and Unacademy raise large growth rounds in recent months.

“We are investing in [Aakash] since it is the most scaled up test preparation business in India with a professional management team and best-in-class corporate governance,” Amit Dixit, head of India PE at Blackstone, said in a statement. “Live tutoring, whether in physical or online classrooms, has proven to be an effective model globally for delivering consistent results in standardized tests.”

Founded in 1988, Aakash is considered one of the leaders in its category in India with more than 200 locations across 130 cities, employing about 2,200 teachers and serving 250,000 students. The company claims to have maintained a consistent track record in medical and engineering entrance examinations over the past 30 years. In 2019, its students represented nine of the top 10 rank-holders in the national medical undergraduate entrance examination, known as NEET.

Blackstone is expected to provide support through its experience and network in the education sector globally. Efforts in this vein to date include the nomination of Deborah Quazzo, a leading education technology investor, to the Aakash board. “We believe Blackstone is a like-minded partner that shares our values and culture,” Aakash Chaudhry, CEO of Aakash, added. “Given Blackstone’s unique partnership philosophy, we engaged exclusively with the Blackstone team for this transaction.”

Blackstone has been active in India since 2006 and has committed $13 billion in the country across PE, real estate and tactical opportunities. Recent activity includes the acquisition of packaging manufacturer Essel Propack, which provides tubes for 40% of global toothpaste supply, and a deal to buy affordable home loans specialist Aadhar Housing Finance for $380 million. In July, the firm invested about $80 million in Future Lifestyle Fashions, a clothing retailer.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Expansion
• Consumer
• India
• The Blackstone Group
• Education