Byju's global lenders are negotiating a settlement that would see them acquire a roughly 30% stake in Aakash Educational Services, the prominent coaching firm acquired by the edtech company in 2021.
Under the proposed agreement, the creditor group would take this equity position in exchange for withdrawing legal action against Byju's and providing debt relief.
The development represents a significant pivot in the ongoing restructuring efforts of the Indian edtech giant, which has faced intense scrutiny and financial pressure in recent years.
By securing a stake in Aakash, lenders aim to mitigate their exposure while potentially unlocking value from one of Byju's most substantial assets.
The deal would also provide Byju's with a reprieve from litigation, allowing management to focus on operational stabilization.
Aakash Educational Services remains a critical component of Byju's portfolio, having been acquired for a significant sum to bolster the company's presence in the competitive test-preparation market.