Co‑founder buys back Indian arm at a steep discount
Mohan Lakhamraju, co‑founder of an edtech company, has reacquired its Indian unit from the parent company that bought the business earlier — paying only a fraction of the roughly $600 million price tag from the earlier deal. The move marks a quick turnaround as founders reclaim pieces of businesses disrupted by larger corporate restructurings.
What changed
- The Indian unit was sold back to its original co‑founder at a significantly lower price than the previous acquisition value of about $600 million.
- Negotiations are underway with the parent company’s lenders over control of the company’s Singapore operations, which are valued at approximately $150–200 million.
Why this matters
The deal highlights how the value of acquired units can shift quickly when buyers face financial strain. For the co‑founder, buying back the Indian unit restores direct control of a core market at a lower cost. For lenders and stakeholders, the talks over the Singapore arm will determine who controls a sizable regional asset and how future operations are funded.
Possible outcomes and next steps
- If the co‑founder secures control of the Singapore operations, he would reunify major parts of the business across markets, potentially simplifying strategy and fundraising.
- Lenders may seek to protect their investments by exercising control or agreeing a sale to recover value, which could prolong negotiations.
- The resolution will shape the company’s regional footprint and influence how other founders and investors view post‑acquisition recoveries in the edtech sector.
For now, the reacquisition of the Indian unit is a clear sign that founders can re‑enter battles for ownership when market conditions change. The coming weeks of talks with lenders will decide whether the Singapore operation becomes part of that comeback.