We are now a separate entity from Byju's: Aakash CEO Deepak Mehrotra

Plan includes scaling up operations, bringing efficiency and setting up hybrid learning centres

Deepak Mehrotra, managing director (MD) and chief executive officer (CEO) of Aakash Educational Services (AESL), is on a mission to revamp operations at the firm amid a crisis in the edtech industry and Aakash investor Byju’s going through an insolvency process.

Mehrotra, who is a travel geek, has put a trip to Antarctica on hold, because he wants to focus all his energy on the organisation.

He has come up with a strategy ‘Aakash 2.0’ which includes scaling up company operations, bringing efficiency and setting up hybrid learning centres.

“When I joined (Aakash), my biggest role was to be a stabilising influence, calming everyone’s nerves. And, to make it clear that we were not going to settle. From there, the energy in the organisation has soared. Today, it’s buzzing with excitement — opening over 150 centres in a year, something we’ve never done before. That’s what we’re aiming for.”

 

Byju’s crisis

Aakash faced its share of challenges over the last year and a half, particularly this year with the NEET exam results controversy and the Supreme Court’s intervention.

Mehrotra said this led to a longer enrolment cycle, causing anxiety not just to the students but also to the firm.

However, overall, this year has been one of the best for Aakash.

Across the board, Mehrotra said the firm saw a strong performance, with approximately 35-37 per cent of the top 100 ranks achieved by Aakash students.

In 2021, Byju's (Think & Learn) acquired 35-year-old brick-and-mortar coaching centre AESL for nearly $1 billion in a cash-and-stock deal.

However Byju’s, which was valued at $22 billion in 2022, has seen its fortunes dwindle. This is due to various regulatory issues and disputes with investors, triggering the firm’s insolvency.

Regarding the situation with Think & Learn (Byju’s), Mehrotra said that Aakash is now a separate entity. He said the recent developments related to Byju’s should not impact Aakash’s 2.0 operations.

He added that a new investor, the Manipal Group, will join the board. The firm is governed by a well-constituted independent board of directors, with Shailesh Haribhakti serving as chairman. 

“I report to the board, and I have been given significant latitude to guide the company into a new growth phase focused on profitability and other goals,” said Mehrotra.

“While there are directors representing various investors on the board, it’s important to note that the largest block of investors is no longer Byju’s,” he said.

According to industry sources, Manipal Health Systems now has 39.95 per cent holding in Aakash. The new investment was led by Ranjan Pai, founder and chairman of the Manipal Education and Medical Group (MEMG).

Think & Learn has 25.75 per cent holding and Singapore-based company Beeaar Investco Pte Ltd has 16.09 per cent holding in the firm. Aakash founder J C Chaudhry has 11.12 per cent stake and Singapore-based VII Topco1 Pte Ltd has 6.91 per cent holding, according to the sources. 

Aakash 2.0

“We are now an independent company, having moved away from being a subsidiary of Byju’s due to recent changes in ownership and our capital structure,” said Mehrotra. “This transition means we are in the process of rebuilding our identity as a completely independent entity. In this context, the changes we are implementing are part of what I call Aakash 2.0.”

About 4.5 million students are preparing for high-stake exams, such as IIT JEE and NEET, across various cities in India. Aakash’s approach is to rethink how it serves these students better.

Instead of requiring them to uproot their lives, the aim is to provide them with access to Aakash from the comfort of their homes or nearby locations through a hybrid model. This way, Mehrotra said they can focus solely on exam preparation without the additional stress of relocating.

The firm has a traditional classroom model, operating in about 315 centres across more than 196 cities. 

By introducing hybrid learning centres, Aakash’s aim is to expand its reach to an additional 30 per cent of the student base that it currently cannot access.

The firm expects to establish a significant number of these centres — ranging from 100 to 250 — before the end of the year, depending on feasibility and partnerships.

It is hiring about 1,500 people for these centres. Currently, AESL has more than 400,000 enrolled students.