MUMBAI: The Manipal Education and Medical Group (MEMG), led by Dr. Ranjan Pai, has expressed interest in acquiring the parent company of the education technology firm Byju’s (Think and Learn Private Ltd), which is currently facing bankruptcy proceedings due to severe debt obligations.
This move by MEMG is reportedly aimed at securing full control of Aakash Educational Services, a key subsidiary under the Byju’s umbrella. Dr. Ranjan Pai’s group previously acted as a ‘rescuer’ for Byju’s by acquiring a 58% stake in Aakash. The current objective is to secure the remaining 25% stake in Aakash that is still held by the bankrupt parent entity, Think and Learn.
Byju’s, founded by Keralite entrepreneur Byju Raveendran, had fallen into a severe crisis after defaulting on loan repayments, leading to the initiation of bankruptcy proceedings. Dr. Ranjan Pai initially stepped in by investing ₹1,400 crore in Aakash in November 2023, primarily by purchasing debt instruments from the US financial institution Davidson Kempner.
The Resolution Professional (RP), Shailendra Ajmera, appointed to sell off Think and Learn’s assets to recover loan amounts, had set November 13 as the deadline for interested parties to submit an Expression of Interest (EOI). Reports indicate that the Manipal Education and Medical Group is currently the sole entity to have submitted an EOI.
Byju’s had acquired Aakash Institute in 2021 for a staggering $950 million (approximately ₹8,000 crore). Following the post-Covid business slump, Byju’s faced major headwinds. Dr. Pai’s initial investment in Aakash secured him around 40% of the shares, followed by further acquisitions from Blackstone and Aakash founder J.C. Chaudhry, raising his stake to 58%.
The ongoing share sale process allows bidders to apply for the entire Think and Learn equity or individual subsidiaries like Aakash, GeoGebra, WhiteHat Jr, and Toppr. Dr. Ranjan Pai’s current strategy is seen as a focused bid to consolidate complete ownership and control over the highly profitable Aakash unit.
