Countdown Begins: Dust May Soon Settle On BYJU’S-Aakash Ownership Battle

Enroute to ending a long-standing legal duel, legal teams of Aakash Educational Services and the insolvency resolution professional (IRP) of Think & Learn, the parent company of embattled edtech startup BYJU’S, are close to reaching a settlement. 

During a hearing at the Bengaluru bench of the National Company Law Tribunal (NCLT) yesterday, the parties informed that their efforts to settle the dispute over Aakash’s shareholding were nearing completion. They sought additional time to conclude their discussions.

Aakash’s counsel Shyam Sundar HV noted that the contours of a possible settlement were being worked out. The NCLT deferred the matter for a next hearing on July 16. The parties also have an option to approach the bench if the terms of the settlement agreement arrive before the stipulated date. 

From Aakash, its largest shareholder MEMG (Manipal Education and Medical Group) and BYJU’S lenders representatives, GLAS Trust, are the parties involved in the negotiations. 

The dispute revolves around the valuation and stake division of Aakash among MEMG and Think & Learn’s creditors as well as entities linked to cofounder Byju Raveendran and his family.

At the heart of the disagreement is BYJU’S-Aakash amalgamation in 2021. As the edtech giant’s financial position deteriorated and insolvency proceedings took hold, Aakash emerged as one of the group’s few assets that continued to hold significant value. 

However, due to financial strain, Aakash has had to raise fresh capital to continue operations. Last year, Aakash undertook a rights issue to raise ₹500 Cr and has been working on rebuilding its long-standing competitive tests prep business. 

Once labelled the crown jewel of BYJU’S, Aakash has now become a key source of recovery for the creditors of the bankrupt company. 

The conflict over Aakash’s shareholding has evolved into one of the most elaborate episodes surrounding insolvency, shareholder rights, and restructuring in the Indian startup ecosystem.

The Rights Issue That Sparked The Dispute

The ongoing NCLT case arose from Aakash’s rights issue last year. Fearing dilution of BYJU’S stake, GLAS Trust and Think & Learn’s resolution professional opposed the move, arguing that any dilution of the remaining 25.75% stake would further degrade the recovery of the creditors.

Aakash and MEMG, however, maintained that the company could not indefinitely delay fundraising because one shareholder was undergoing insolvency proceedings.

The disagreement soon escalated.

What Is Being Negotiated?

The proposed settlement seeks to resolve competing claims over three key blocks of Aakash shares:

• MEMG’s stake of around 58%
• Think & Learn’s holding in Aakash, which is said to have dipped to below 5%
• Stake held by Beeaar Investco, a Singapore-based entity linked to Byju Raveendran and his family

The negotiations are centred around determining the valuation of the coaching institute chain. If successful, the settlement could help free Aakash from the broader litigation surrounding BYJU’S.

The dispute over Aakash’s shareholding has emerged as one of the most complex sagas involving insolvency, shareholder rights, and corporate restructuring in the Indian startup ecosystem.

The developments have unfolded over several years. Here’s a look at the key events that shaped the dispute. 

The Rise And Fall Of BYJU’S Through Aakash’s Lens

For years, Aakash Educational Services was seen as one of BYJU’S most successful bets.

When BYJU’S acquired the coaching giant via a nearly $1 Bn deal in 2021, it marked a defining moment in the startup’s expansion story. Riding the edtech boom, the company was rapidly scaling its global footprint, while Aakash gave it a strong foothold in the domestic test-preparation market.

To fuel its aggressive expansion plans, BYJU’S raised a $1.2 Bn Term Loan B (TLB) from overseas lenders. However, this loan emerged as one of the biggest factors which triggered the downfall of BYJU’S. According to Raveendran, taking the loan was one of the biggest mistakes he made. 

“Only mistake if you ask me, which created all this is that we shouldn’t have taken this. When we had enough equity options, we shouldn’t have taken this term loan at that time in 2021,” Raveendran said in an interview to ANI last year.

The first signs of strain emerged in 2022 as the pandemic-era boom in online education began to fade. Students returned to classrooms and the economics of rapid expansion began asserting pressure on the bottom line.  

Negative developments of layoffs, delayed financial filings, among others, drew attention to the company’s aggressive acquisition strategy till then. Governance concerns intensified, with Deloitte resigning as BYJU’S auditor, citing delays in receiving financial information. Representatives of major investors, including Prosus, Peak XV and Chan Zuckerberg Initiative, stepped down from its board. 

The crisis deepened dramatically over time. Lenders accused BYJU’S of transferring about $533 Mn from BYJU’S Alpha to hedge fund Camshaft Capital without their approval. 

However, the major escalation to the situation came after the BCCI approached the NCLT over unpaid sponsorship dues of about ₹158 Cr.

In July 2024, the NCLT admitted insolvency proceedings against BYJU’S. Although BYJU’S briefly secured relief after its director Riju Ravindran settled the BCCI dues, it proved to be short-lived. Following a challenge from GLAS Trust, which represents lenders to the $1.2 Bn loan, the Supreme Court restored the insolvency process.

The battle continued throughout 2025, spilling across multiple courts and jurisdictions. Recovery proceedings expanded, with promoters challenging aspects of the insolvency process linked to the $1.2 Bn loan in the US. 

A Delaware court also held Raveendran liable for more than $1 Bn in a case tied to the alleged diversion of funds from BYJU’S Alpha.

By then, the focus had shifted from reviving BYJU’S to determining how creditors would recover their money and who would ultimately control Aakash. The dispute remains ongoing and continues to evolve.

Even as negotiations progress, cofounder Raveendran continues to face legal troubles. Earlier, Singapore High Court held him in contempt in a dispute linked to investor claims and sentenced him to six months’ imprisonment. 

The HC issued a stay on the committal and surrender provisions of its May 25 civil contempt order. The decision has been contested. 

Although the end of the dispute over Aakash’s holding would end a long drawn case, BYJU’S continues to be under multiple pain points. 

Edited By Akshit Pushkarna
Creatives: Abhyam Gusai

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