Education
Technology
Business
Financial Services
Online Learning
Skill Development
Corporate Training
Veranda Learning Solutions Limited - Another Byju's in making?
A thread ๐งต
A thread ๐งต
About the company
The company is engaged in the business of providing educational courses through online, offline hybrid and offline blended models. They also provide customised short-term and long-term skilling courses and various corporate courses that focus on the B2B sector.
The company is engaged in the business of providing educational courses through online, offline hybrid and offline blended models. They also provide customised short-term and long-term skilling courses and various corporate courses that focus on the B2B sector.
Financials (Sales)
FY21 - 3 crore
FY22 - 75 crore
FY23E - 600 crore
The company is planning for aggressive inorganic growth and already acquired some marquee names in the education industry.
FY21 - 3 crore
FY22 - 75 crore
FY23E - 600 crore
The company is planning for aggressive inorganic growth and already acquired some marquee names in the education industry.
Company's Mission
The company is on a mission to make world class education affordable and available to everyone, irrespective of location or socio-economic status.
The company is on a mission to make world class education affordable and available to everyone, irrespective of location or socio-economic status.
Promoter's track record
Suresh Kalpathi was the Co-Founder of SSI Ltd which became India's first and only high end short-term IT training provider during 1990s. Later, SSI had successfully acquired Aptech and then sold the entire business to a investor group based out of Mumbai.
Suresh Kalpathi was the Co-Founder of SSI Ltd which became India's first and only high end short-term IT training provider during 1990s. Later, SSI had successfully acquired Aptech and then sold the entire business to a investor group based out of Mumbai.
Contd.
The entire bet is on the management and they have a collective experience of over 40 years in the education sector and also possess vast experience in other industries such as finance, IT and entertainment.
The entire bet is on the management and they have a collective experience of over 40 years in the education sector and also possess vast experience in other industries such as finance, IT and entertainment.
Why they started Veranda Learning?
Suresh Kalpathi recently said,
"Education has always been my passion. It remains difficult for millions of students especially those in Tier 2 and Tier 3 cities to find appropriate educational courses that balance quality and affordability."
Suresh Kalpathi recently said,
"Education has always been my passion. It remains difficult for millions of students especially those in Tier 2 and Tier 3 cities to find appropriate educational courses that balance quality and affordability."
Revenue Breakdown
Currently, 39% revenue is coming from online segment and the other 61% is coming from offline segment. Going forward, the company will keep focusing on both the segment.
Currently, 39% revenue is coming from online segment and the other 61% is coming from offline segment. Going forward, the company will keep focusing on both the segment.
Company Update
Currently, the company provides services through four of it's wholly owned subsidiaries:
1) Veranda Race
2) Veranda CA
3) Veranda IAS
4) Edureka
Currently, the company provides services through four of it's wholly owned subsidiaries:
1) Veranda Race
2) Veranda CA
3) Veranda IAS
4) Edureka
YouTube Channel
Edureka's YouTube channel has over 3 million subscribers - the highest subscriber base in the world in the IT education sector.
Edureka's YouTube channel has over 3 million subscribers - the highest subscriber base in the world in the IT education sector.
TIME Institute acquisition
Recently, the company entered into a SPA for a acquisition of TIME at a consideration of Rs 280 crores foraying into MBA, NEET and JEE Test prep and the pre-school segment.
Recently, the company entered into a SPA for a acquisition of TIME at a consideration of Rs 280 crores foraying into MBA, NEET and JEE Test prep and the pre-school segment.
Contd.
With this acquisition, the company will be able to expand the offerings in the test preparation segment.
With this acquisition, the company will be able to expand the offerings in the test preparation segment.
Veranda Acacia
The company also launched 'Veranda Acacia' a comprehensive learning platform aimed at closing the IT skills gap in India. This initiative aims to open 1000+ franchisee run classrooms across India to target graduates and prepare them for the workforce.
The company also launched 'Veranda Acacia' a comprehensive learning platform aimed at closing the IT skills gap in India. This initiative aims to open 1000+ franchisee run classrooms across India to target graduates and prepare them for the workforce.
Conclusion
It's a simple aggregation play. The promoter will acquire the company at distress valuation of 1-2 times sales, make it more efficient & cost effective and it will trade at 8-10 times sales.
It's a simple aggregation play. The promoter will acquire the company at distress valuation of 1-2 times sales, make it more efficient & cost effective and it will trade at 8-10 times sales.
Contd.
Based on current numbers, the valuation looks extremely high.
Based on estimated numbers, the valuation looks very attractive.
EXECUTION is the biggest risk here..
Based on current numbers, the valuation looks extremely high.
Based on estimated numbers, the valuation looks very attractive.
EXECUTION is the biggest risk here..
Please don't consider this post as any recommendation. This post is only for educational purpose.
Disclosure - Holding from much lower levels
Disclosure - Holding from much lower levels
Loading suggestions...