According to a top official, test preparation major Aakash Educational Services (AESL), which is owned by Byju’s, is confident of growing by 60-70 percent this year, with market demand, hirings, the addition of new centers, and an increase in student count driving business momentum. The positive commentary from AESL is significant in light of the fact that the reopening of schools and colleges in the offline mode has impacted the business models of many new-age edtech startups.
Indeed, there have been numerous reports of layoffs in the market, and some edtech startups that had announced ambitious plans and fundraising at the height of the pandemic have shut down operations in recent months.
According to Abhishek Maheshwari, CEO of Aakash Educational Services, AESL continues to see “robust” growth in terms of student volume, number of centers, and other key metrics, and expects to hire 2,000-3,000 people in the next year.
Last year, Byju’s acquired Aakash Educational Services Ltd, which provides test preparation services to students preparing for medical and engineering entrance exams, school and board exams, and other foundation-level examinations, in a mega deal valued at nearly USD 1 billion.
Maheshwari observed that students’ return to classrooms (as the pandemic eases) has strengthened AESL’s proposition, owing to the hybrid model built with digital layers, which continues to provide added flexibility.
“Our digital business is expanding as well, and we are expanding at an unprecedented rate. This is due to our value proposition, track record of results, technology, delivery, and content mix, as well as geographic reach “Maheshwari remarked.
To meet market demand, Aakash intends to open 50-60 new centers by the next academic year. It now has nearly 300 centers and plans to expand space in 100 of them in the coming months.
Aakash Educational Services Limited has added 4,000 employees in the last nine months, bringing its total headcount to over 8,000, and plans to hire 2,000-3,000 people in the next year to meet the demands of an increasing student population.
“Given our projected growth and expansion, this demonstrates that our appetite for people and talent remains strong. And the advantage is that our business model is fairly stable and has withstood the test of time… the biggest test being the pandemic itself “Maheshwari explained.
He emphasized that Aakash’s business model is “strong” and “not driven by hype.” Aakash is a cashflow positive company whose growth is self-funded by operations revenue.
“We feel reasonably good about where we are and where we are going in terms of growth and, consequently, the people we need,” Maheshwari said.
This year, the number of active students is expected to exceed four lakh, more than doubling from pre-pandemic levels.
In response to a question about the edtech sector’s sheen wearing off after a golden run by startups, Maheshwari said there has been a “bit of a reality check” in the market, but that the edtech opportunity is still there because people have seen the power of online learning.
“I believe it was overstated, and I believe there will be some sanity now. More robust edtech business models will not only survive, but thrive “as predicted by him
There was some overcapacity, “over-exuberance,” a tendency to pay a lot for customer acquisition, and a lot of “me-too” players with little differentiation in the market.
“In a country like India, education is all about results. So, in the end, you can acquire as many customers as you want, but you must be able to produce results in some meaningful way at each stage “he said.
Long-term play requires players to focus on students and on delivery.
“I am optimistic that all of this will happen because the need is great. People were able to learn during these two years, thanks to technological advances. There was the option of online learning “Maheshwari elaborated.
The concept of online education is here to stay, and it is up to participants to prioritize the appropriate metrics for measuring performance.
“We track student outcomes and success rates in our system. We are, after all, a business, so we keep track of sales. However, one of the most important metrics for us is results “he said.
Measurements on parameters such as what percentage of students qualify, whether marks improve month after month, and whether the syllabus is completed on time are critical. “And because we measure that, people are focused on delivering that,” he said.
He attributed Aakash Educational Services’ 33-year track record to its laser-like focus on student performance and results.
“Because of this, we are still here 33 years later. We could have a good or bad sales year… But the fact that we deliver results with single-minded focus is why we will still be here in ten years “Maheshwari continued.
