Aakash Supposedly Discontinues its Digital School Initiative Following Layoffs

Nitin Konde, Varun Bhardwaj

Oct 17, 2024 — 2 min read

Aakash Discontinues Digital School Initiative Amid Layoffs

According to reports, Aakash Digital Classroom Program (AD-CRP), a digital classroom initiative, has been discontinued by Aakash Educational Services Limited (AESL). This occurs in the middle of the company's recent layoffs.

The AD-CRP team, which was formerly a part of Byju's—which acquired Aakash in April 2021—has now been merged into Aakash's sales system, according to a report published by a media outlet. This action implies a change in Aakash's approach, with the company giving priority to its offline presence and growing its network of physical branches.

Previous reports from August and September detailed layoffs at Aakash that affected middle and senior management as well as a few long-term workers. The remaining AD-CRP team members were given the option to work for Aakash in their offline outlets or were integrated into their call centre model. Individuals who turned down these offers were let go or resigned.

This reorganisation suggests that Aakash may be changing how it prepares for tests. Although the corporation still maintains its online resources, the recent programme shutdown and layoffs indicate that they are putting more of an emphasis on fortifying its sales network and physical infrastructure.

Students May Face Challenges

Due to the abrupt termination, students who had registered in the AD-CRP program might encounter difficulties. Regarding the termination of the AD-CRP initiative and the justification for this tactical change, Aakash has not yet made an official statement.

According to sources, layoffs have not ceased for the previous two weeks. Since associates made up the majority of the AD-CRP team, associate layoffs have occurred most frequently. A few also came from the ranks of manager and senior manager.

January marks the start of the new season. For the last six and a half months of revenue, they have been spending on AD-CRP team. All of them have now been let go, regardless of their performance. They stated that they were done with this function in Aakash. Byju's paid $940 million to acquire Aakash in April 2021. During a hearing before the National Company Law Tribunal in March of this year, Think and Learn, the parent company of Byju, and Aakash withdrew their merger motion.

Why Merger With Byju’s Was Withdrawn?

Aakash Educational Services Ltd (AESL) and Byju's have opted to withdraw their merger application, citing it as a pre-planned procedural move. When Byju's first purchased Aakash in April 2021, the plan was to combine the two businesses in a $940 million cash and equity transaction. The Chaudhry family, who founded AESL, opposed completing the share swap, citing issues about governance, which put obstacles in the way of the merger. Byju's has to contend with a parallel 'oppression and mismanagement case' brought by investors, which affects its operational and financial choices.