India’s education sector is one of the largest in the world, with around 26% of the population belonging to the 0-14 age group. The country has over 250 million school students — more than in any other country—and it has one of the largest networks of higher education institutions in the world.
With an adult literacy rate of 74.5%, the government of India has increased the budget allocation for education from ₹3.54 trillion in 2015 to ₹6.75 trillion in 2021.
The Indian government has launched schemes like Samagra Shiksha Abhiyan and Sarva Shiksha Abhiyan to promote education in the country. In the latest budget, a total of ₹383.5 billion was earmarked for higher education and ₹548.7 billion for school education and literacy.
Veranda Learning Solutions recently filed draft papers with market regulator Securities and Exchanges Board of India to raise ₹200 crores through an initial share sale. The company may also consider a private placement of equity shares aggregating up to ₹50 crores.
The company plans to utilize an estimated amount of ₹60 crores from the net proceeds towards repayment or prepayment of all borrowings. Veranda would use around ₹25.1 crores to discharge a part of their liability related to the purchase consideration of Edureka. The remaining funds would be utilized for other growth initiatives.
Optimized Learning
Veranda Learning Solutions offers diversified and integrated learning solutions in the online, offline hybrid and offline blended formats to students, professionals and corporate employees for competitive exams, professional courses, exam-oriented courses, short-term upskilling and reskilling courses.
The Chennai -based company recently acquired Edureka, a live-instructor-led online solutions provider for the IT industry, for ₹245 crores. Earlier, the company had acquired Chennai Race Coaching Institute, a coaching institute for banking, SSC and PSC exams.
Key Numbers
For the three-month period ended June 2021, the company had total revenues of ₹4.86 crores. It suffered a net loss of ₹5.15 crores during the quarter, compared to a loss of ₹8.27 crores in the same quarter of the previous year.
Veranda’s revenues fluctuate according to the academic cycles of its courses and timelines of entrance & competitive exams, which are cyclical and instantaneous in nature. It is also dependent on examination schedules and the release of examination results.