Deepak Mehrotra, newly appointed Managing Director and Chief Executive Officer of Byju’s Aakash Educational Services Limited (AESL), will receive a salary of ₹5 crore per annum starting from the current fiscal year (FY25). This salary package includes a monthly salary of ₹41.66 lakh, encompassing HRA, special allowances, and a provident fund.
Sources reveal that Mehrotra’s compensation will also be supplemented by a performance-based bonus, potentially up to 20% of his annual salary, contingent on achieving specific goals or key performance indicators. In addition, AESL’s board has granted Mehrotra Employee Stock Ownership Plans (ESOPs) valued at ₹25 crore, which will be vested in equal installments over four years beginning April 2025.
Mehrotra joins AESL from Ashirvad Pipes, where he served as Managing Director. With over 35 years of experience in executive roles across FMCG, telecom, and education sectors, Mehrotra is expected to drive AESL’s strategic initiatives aimed at enhancing its educational offerings and expanding its market reach. Byju’s expressed confidence in Mehrotra’s ability to significantly impact the education sector, stating, “Byju’s stated at the time of the appointment that Mehrotra would be a part of AESL’s strategic plan to enhance its offerings, broaden its reach, and have a positive impact on the education landscape.”
In a notable development, Aakash secured $168 million in funding from Ranjan Pai, Chairman of Manipal Education and Medical Group, in November 2023. This funding was used to settle debts incurred from Davidson Kempner. Byju’s acquired Aakash for $940 million in April 2021. Despite this, AESL’s founders, the Chaudhry family, opted not to exchange their remaining stake due to governance concerns, leading both entities to withdraw their merger petitions. Consequently, they now operate independently under the Think and Learn brand.
Aakash’s financial outlook appears promising, with a projected operating revenue of over ₹2,300 crore for FY23, according to its valuation report. However, the company has yet to file audited financial statements for FY23 and FY24. It faces competition from industry peers such as FIITJEE and Kota-based Allen Carrier Institute. Allen reported a profit of ₹429 crore on revenue of ₹2,277 crore in FY23, while FIITJEE faced bankruptcy despite generating ₹542 crore in revenue. Both institutions have not yet disclosed their FY24 financials.