Byju clears the pending payment of $2234 million to the global private investment firm Blackstone. They were linked to its deal to acquire the brick-and-mortar coaching chain Aakash Institute last year. As we know that Byju acquired the Aakash Institute last year in the amount of $950 million in April 2021. The amount of payment to Blackstone was delayed of about 38% as it is a stake held by Blackstone.
The timeline for the payment was in June, but it was extended to August this year. Byju Raveendran explained the procedures as they have to meet the guidelines set by the RBO so he clear the payment by the end of September.
Byju is one of the most valued startups, but they also had been facing criticism for the delay in furnishing their audited financials for the years 2020-21. On September 14, with the gap of 18 months, the Bengaluru-based startup said that the revenue from the operation of financial year 21 had been readjusted to Rs 2,280 crore and the losses had ballooned to Rs 4,588 crore from Rs 262 crore in the previous financial year.
The company claimed that its unaudited financial results show a revenue record of Rs 10,000 crore. Significant growth in revenue compared to the financial year 2020, but because of the revenue recognition changes, it is getting pushed to the next year.
FAQ
- What is the pending amount?
Ans. $234 million
- When did the Aakash acquisition take place?
Ans. 2021
- At which amount did Byju take over Aakash?
Ans. $950 million