The reason behind Byju’s, the most highly valued edtech company globally, securing substantial funding last year may now be clear.

According to a report from Bloomberg, the Bangalore-based company has reached an agreement to acquire Aakash Educational Services. Aakash operates a network of over 200 tutoring centers throughout India, focusing on preparing students for entrance exams to leading engineering and medical institutions.

The publication indicates that Byju’s will invest $1 billion in the purchase of Aakash Educational Services, established in 1988 and currently assisting over 250,000 students. In late 2019, Aakash sold a 37.5% ownership stake to Blackstone in a transaction that assessed the Indian company’s value at approximately $500 million.

A representative for Byju’s did not provide a comment when asked.

Over the past two years, Byju’s has secured more than $800 million in funding, resulting in more than a doubling of its valuation to exceed $11 billion. Similar to other edtech companies in India, the startup experienced a significant increase in student enrollment last year as the pandemic led to nationwide school closures in New Delhi.

Byju’s provides educational resources for students pursuing both undergraduate and graduate degrees, and has recently broadened its offerings to include all school levels. Instructors on the Byju’s platform utilize everyday items, like pizza and cake, to explain challenging concepts. The company achieved profitability in late 2019 and had served over 70 million students by the end of last year.

During an interview at TechCrunch Disrupt last year, Byju Raveendran, co-founder and CEO of Byju’s, stated that the company, which previously acquired the coding platform WhiteHat Jr for $300 million, was receptive to further mergers and acquisitions.

The startup has backing from prominent investors, including Bond, co-founded by Mary Meeker. Bond anticipates Byju’s will be valued at over $30 billion within the next three years, as shared with TechCrunch by a source with knowledge of the matter.

Updated at 5.48PM IST, Wednesday: A spokesperson for Aakash released the following statement. “Aakash Educational Services Limited (AESL) is currently exploring a partnership with Byju’s to create a robust synergy. The Chaudhry family and Founders, Mr JC Chaudhry & Mr Aakash Chaudhry, are dedicated to continuing the leadership of Aakash Educational Services alongside the existing management team, maintaining the same level of enthusiasm and commitment. To address these reports, we want to confirm that AESL is focused on becoming India’s largest digitally-integrated, omni-channel education provider. We will accelerate our digital evolution and provide exceptional benefits to our students. We will quickly expand our omni-channel and digital services as we begin the next phase of high-quality education and expansion. We remain committed to our Founder’s principle of ‘Student First,’ allowing us to deliver lasting value to our students, staff, investors, and other stakeholders.”