Veranda Learning forays into preschool segment, goes deeper into test prep
Veranda Learninghas acquired test prep-institute T.I.M.E for a consideration of ₹287 crore.
- This is Veranda’s first acquisition since it went public last month.
- T.I.M.E operates through 188 centres including franchisees spread across 98 cities in India and runs 222 preschools.
AdvertisementEdtech company Veranda Learning Solutions has ventured deeper into the test prep and preschool segment with the acquisition of Hyderabad-based test prep-institute T.I.M.E (Advanced Educational Activities Private Limited) for a consideration of ₹287 crore.
This is Veranda’s first acquisition since it went public last month at a premium of 20%. Veranda’s share price has increased nearly 54% since its listing.
The latest acquisition marked the company’s entry into the business administration (MBA), National Eligibility cum Entrance Test (NEET) and Joint Entrance Examination (JEE) test-prep as well as the preschool segment.
“This 100% acquisition will be in a phased manner with 80% of the outstanding capital along with management control in phase 1, followed by the purchase of the remaining 20% at the end of two years,” Veranda said in a statement.
Founded in 2018 by Suresh Kalpathi, Veranda offers online and offline coaching services for career-defining courses such as UPSC, chartered accountancy, banking, and government exams to students, graduates, professionals, and corporate employees.
The company provides services through four subsidiaries — Veranda Race, Veranda CA, Veranda IAS, and Edureka, which is the customer-facing brand of Brain4ce Education Solutions. It reported a loss of over ₹8 crore in fiscal year 2021.
“Our experience and strengths combined with the background of technology and franchising business of the promoters of Veranda will surely create superior value to large segments of the student community. Outstanding reputation of each Course offering from this group will complement each other,” Pramod Kumar, founder and director of T.I.M.E, said in a statement.
T.I.M.E — founded by Manek Daruvala, Viswanath Pillutla and Kumar — operates through 188 centres including franchisees spread across 98 cities in India. The company claims to have trained over 22 lakh students since its inception in 1992, with a run rate of almost 1.1 lakh students annually. The Company also has a chain of pre-schools under the T.I.M.E. Kids brand operates through 222 pre-schools in 56 cities.
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