Manipal's Bid for Byju's Parent: A New Chapter in Ed-Tech
Manipal Education and Medical Group has emerged as a potential bidder for Think and Learn, the parent company of the embattled ed-tech giant Byju's. This development comes amid a turbulent period for Byju's, which has faced significant financial and operational challenges.
Byju's Rise and Fall
Once a shining star in the education technology sector, Byju's expanded operations across 21 countries and saw its valuation soar to $22 billion in 2022. However, its fortunes took a dramatic turn in 2024, marked by:
- Unpaid debts
- Leadership changes
- Accusations of poor management
Byju's has consistently denied any wrongdoing, but the company's struggles have led to an ongoing insolvency process before the country's company law tribunal.
Manipal Education's Strategic Move
Manipal Education, which holds a majority stake in Aakash Educational Services, has previously expressed interest in acquiring Think and Learn. The deadline for bids was extended to November 13, signaling ongoing negotiations.
The potential acquisition aligns with Manipal Education's strategy for business consolidation. In 2021, Byju's acquired Aakash for 78.85 billion rupees ($950 million). Since then, Ranjan Pai, the chairman of Manipal Education, has become Aakash's largest shareholder, according to media reports.
The Volatile Ed-Tech Sector
The ed-tech industry has experienced rapid growth followed by significant challenges. Byju's journey reflects the risks and rewards of investing in this dynamic sector. Manipal Education's bid for Think and Learn could reshape the ed-tech landscape, but the outcome remains uncertain.
