From 8 students to ₹10,000 crore empire: All about Rajesh Maheshwari, the mechanical engineer who built Allen

Rajesh Maheshwari began teaching just eight students from his family home in Kota, Rajasthan, in 1988. More than three decades later, that modest beginning has grown into Allen Career Institute, one of India's biggest test-preparation businesses, with a valuation of around ₹10,000 crore.

From mechanical engineering to teaching

Teaching was not Maheshwari's original career plan. According to Moneycontrol, he had completed a diploma in mechanical engineering and initially wanted to become a train driver. However, difficult family circumstances pushed him towards teaching.

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What started as home tuition gradually changed his perspective. After spending time with students and earning the trust of their families, Maheshwari decided to turn the activity into a formal coaching institution.

On April 18, 1988, he founded Allen Career Institute and named it after his father, Late Shri Laxmi Narayan Maheshwari. The institute started with only eight students.

The strategy that made Allen stand out

From the beginning, Allen adopted a broader academic approach. Instead of focusing on just one or two subjects, the institute offered coaching in Physics, Chemistry, Mathematics and Biology.

The strategy was aimed at preparing students for multiple competitive examinations under one roof. Early results helped establish the institute's credibility. Moneycontrol reported that Allen recorded 12 selections in Rajasthan PMT in 1991, while one of its students secured the first rank in Rajasthan PMT in 1995.

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These results helped the institute attract more students and strengthen its reputation in medical and engineering entrance preparation.

Family business becomes education empire

As Allen expanded, Maheshwari's brothers Govind, Naveen and Brajesh joined him. Together, the family helped develop the organisation around teaching, faculty and student support.

Over the years, Allen expanded far beyond Kota. According to figures cited by Moneycontrol, the institute now has a presence in more than 75 cities across 25 states and four Union Territories, with a workforce of more than 16,000 people. More than 44 lakh students have been associated with its programmes across different modes since 1988.

$600 million investment and national expansion

A major turning point came in 2022 when Bodhi Tree Systems, an investment platform led by James Murdoch and Uday Shankar, invested $600 million in Allen for around a 36% stake. The transaction valued the company at more than $1 billion, while the Maheshwari family retained majority ownership.

The investment came as education was rapidly shifting towards digital and hybrid learning. Allen subsequently strengthened its online offerings, allowing students outside traditional coaching hubs to access its courses.

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Revenue growth comes with profit pressure

Allen's expansion has also translated into a sizeable education business. Moneycontrol, citing Tracxn data, reported that revenue rose from ₹ 2,395.6 crore in FY23 to ₹ 3,473.3 crore in FY24. However, profit after tax fell from about ₹ 243.7 crore to ₹ 135.9 crore during the same period.

For FY25, revenue stood at around ₹ 3,310 crore, while profit after tax declined further to approximately ₹ 41.2 crore.

From a family home and eight students in 1988 to a nationwide education network valued at around ₹ 10,000 crore, Maheshwari's journey reflects the transformation of Kota's coaching culture into a large-scale education business.