Manipal Group’s Dr. Ranjan Pai to invest in ed-tech firm Aakash
The Chairman of Manipal Group, Dr. Ranjan Pai is coming as a rescuer for Aakash, the ed-tech company owned by Byju's that is currently facing difficulties. As an investor in Byju's, Dr. Pai’s family office is in talks to invest around $90 million, which would greatly assist the struggling ed-tech giant and provide some much-needed relief.
Dr Pai was one of the early investors in Byju. The owner of Byju’s, Byju Raveendran has a 30% stake in Aakash. Reportedly, he is planning to partially sell some of his shares to Dr Pai for a sum ranging from $80 to $90 million. This step will secure funds to repay approximately Rs 800 crore to Davidson Kempner. This payment comes after Byju’s faced a technical default on a loan raised in May. Additionally, Byju Raveendran aims to release the pledge on Aakash shares he had initially offered as collateral for the Davidson Kempner loan.
Dr Pai’s potential investment in Aakash holds financial implications and marks a full circle in the business relationship between him and Byju, reflecting their longstanding association in the tech sector.
Byju is keen to raise an additional amount of $200 million (Rs 1,600 crore) for Aakash as part of the funding round. As per sources, there are rumours that sovereign wealth funds might join the investment.
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