Veranda Learning Solutions

About the company

The pandemic-triggered lockdowns forced educational institutions to move online in 2020.  Also, amid the turmoil in the job markets, there was an urgency among professionals to upskill themselves. These two developments fuelled the growth of India’s young edtech industry. Investors poured money into this space, driving up the [ **valuations**](https://inc42.com/features/edtech-india-unacademy-byjus-funding/) of edtech companies to enviable levels. Pouncing on this opportunity, Chennai-based Kalpathi Group [ **launched**](https://timesofindia.indiatimes.com/business/india-business/kalpathi-group-launches-edtech-co-veranda-learning/articleshow/79518294.cms) the edtech platform Veranda Learning Solutions in December 2020. The group has been in the education sector since 1991 and had started by offering short-term computer software courses to students. Now, the learning solutions company is all set to hit the bourse. Through the IPO route, Veranda Learning Solution plans to raise money for repaying its debt, funding its latest acquisition and other growth initiatives. **All about the IPO** The company provides learning solutions primarily through online (recorded videos and online live instructor), offline hybrid (classroom teaching supported with online assessments) and offline blended  (a mix of online content and offline delivery) learning models. Its customer-base includes students, aspirants, graduates as well as professionals and corporate employees. The company offers a variety of preparatory courses to students who are preparing for the UPSC Exams, State Public Service Commission, Staff Selection Commission, banking, insurance, railways exams and Chartered Accountancy. In the first nine months of FY22, a total of 42,667 students and professionals enrolled for its courses, with a majority of them opting for the online model. As of December 31 2021, the company has 431 employees on its payroll and 400 outsourced employees. **Financials** **** **Strengths** * Its acquisition, Edureka, has over 30 lakh subscribers on its YouTube channel. * Has a large repository of digital content, study materials and test series. * Has around 10,000 sq. ft of production facilities in Chennai. * Has recorded video content of more than 4,000 hours. **Risks** * Failure to retain or attract new students. The retention rate was 21% in FY21. * The attrition rate of its mentors (tutors) was 37% in FY21. * Operates in a cyclical sector. The business is linked to the academic cycle. * No operating history prior to December 2020. **Good to know** India’s educational technology market is expected to grow rapidly at a CAGR of 39% to $10.4 billion by 2025. Being a young edtech platform, Veranda Learning Solutions could benefit from the surge in demand for online learning.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   29 Mar 2022

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   31 Mar 2022

   Last day to place your bid

3. Basis of Allotment

   Completed
   31 Mar 2022

   Share allotment finalised

4. Refund Initiation

   Completed
   06 Apr 2022

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   05 Apr 2022

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   07 Apr 2022

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.