Veranda Learning Solutions Limited has informed the Exchange regarding a press release dated August 09, 2023, titled "Press Release on Financial Results pursuant to Regulation 30 of SEBI (Listing Obli...
9th August, 2023
of
BSE Limited Corporate Dept Services, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001
Veranda Learning Solutions Limited (formerly Veranda Learning Solutions Private Limited) (formerly Andromeda Edutech Private Limited)
National Stock Exchange of India Limited The Listing Department, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 051
Scrip Code: 543514
Symbol: VERANDA
Sub:
Press Release on Financial Results pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 a n d i n v e s t o r p r e s e n t a t i o n .
Dear Sir/Madam,
Please find enclosed the press release titled ‘Veranda Learning Solutions announces Q1 FY 2023-24 Financial Results” pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.
This information will also be hosted on the Company’s website at www.verandalearning.com.
Kindly take the same on record and display the same on the website of your exchange.
Thanking you,
For Veranda Learning Solutions Limited
M Anantharamakrishnan Company Secretary & Compliance Officer M. No: ACS-7187
contact@verandalearning.com
www.verandalearning.com
+91 44 4296 7777
34,Thirumalai Road, T.Nagar,
Chennai, Tamil Nadu-600017
CIN: L74999TN2018PLC125880
Press Release
Veranda Learning Solutions turns EBITDA positive for Q1FY24 On track to double revenues for the year, continue its accelerated growth in profits
Chennai, 09 August 2023: Veranda Learning Solutions, a public listed Education company (BSE: 543514, NSE: VERANDA), has announced its financial results for Q1FY24. The company has recorded positive EBITDA of Rs. 5.64 crores for the quarter compared to a negative EBITDA of Rs. 20.20 crores in the last quarter underscoring the company’s commitment to sustainable and profitable growth along with providing affordable quality education.
Veranda Learning has reported an EBITDA of Rs. 5.64 crores for Q1FY24, a significant turnaround from the operating loss of Rs. 13.39 crores for the same period last year. The company witnessed an impressive revenue growth of 146.15% Y-o-Y with total revenue for Q1FY24 standing at Rs.70.48 crores compared to Rs. 28.63 crores in Q1FY23. The company clocked bookings of Rs. 95.85 crores for the quarter and hit an ARR of Rs. 475.68 crores in cash collection along with an average daily collection of Rs 1.3 crores in June .
Consolidated Financial Highlights:
Particulars (Rs. crores) Revenue from Operations
Other Income
Total Revenue
Gross Profit
Gross Profit Margin (%)
Operating Expenses
Advt & Business Promotion
Corporate Costs
Non-Operating Expenses
ESOPs/RSU
Growth Investment
One time Transaction Costs
EBITDA
Finance Cost
Depreciation
Tax Expenses
PAT
Q1FY24 68.90
1.58
70.48
38.38
Q1FY23 28.19
0.44
28.63
11.90
55.71%
42.21%
10.27
5.58
1.53
0.00
0.00
5.64
8.45
18.96
-2.44
-19.33
8.47
4.93
2.07
1.38
0.00
-13.39
1.73
6.14
-1.19
-20.07
Y-o-Y 144.42%
146.15%
222.53%
21.30%
13.25%
(26.05)%
-
374.45%
208.91%
104.28%
-
Q4FY23 48.41
0.39
48.80
23.85
49.27%
11.54
10.30
1.68
8.07
5.63
-20.20
5.15
17.67
-4.34
-38.68
Q-o-Q 42.33%
44.42%
60.91%
(10.95)%
(45.79)%
(8.70)%
-
-
64.32%
7.25%
-
-
Key Consolidated Financial Highlights:
Total Revenue stood at Rs. 70.48 crores in Q1FY24 compared to Rs. 28.63 crores in Q1FY23 a growth of 146.15%
YoY
Gross Profit for Q1FY24 was at Rs. 38.38 crores compared to 11.90 crores in Q1FY23 a growth of 222.53%; Reported
a Gross Profit margin of 55.71 % in Q1FY24 compared to 42.21% in Q1FY23
Advertising and business promotion expenses for Q1FY24 stood at Rs. 10.27 crores
The Company reported an EBITDA of Rs. 5.64 crores in Q1FY24 compared to a loss of Rs. (13.39) crores in Q1FY23
The total number of student enrolments for Veranda stood at 40,386 for the quarter compared to 18,308 in
Q1FY23, registering a strong growth of 120.59% YoY
Speaking on an exceptional quarter performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said, “ I am extremely pleased to announce that we have turned EBITDA positive for the quarter backed by a remarkable revenue growth. This represents a significant milestone in the company’s journey and is a step towards long term value creation for all its stakeholders. This growth comes on the back of scaling of existing revenues as well as cost optimisation exercises undertaken by the company .
In the last quarter, the Company had announced signing of definitive agreements with seven new businesses. In addition, we have announced partnership with Sreedhar's College of Competitive Exams which deepens our competitive test prep presence in newer geographies whilst also expanding our presence in the publishing business. These acquisitions will consolidate Veranda’s position as a comprehensive education player in the sector.”
The company remains optimistic about its future prospects and is well-positioned to capitalize on the emerging opportunities in the education industry. In the last quarter, the Company had announced signing of definitive agreements with multiple new businesses that deepen the roots of the Veranda ecosystem. The offerings of Veranda group now includes placement training and skill development courses for college students , private banking test preparation, operating and providing services to K-12 schools , publishing and distributing educational material, Virtual internships (an integral part of the directives of NEP) and Hire- Train and Deployment of graduates with industry relevant technology skills. We are also partnering with leading players in the government test prep space in Kerala, AP &Telangana enabling Veranda Race to become the largest Govt test prep player in South India. The company has also partnered with Logic School of Management to strengthen and deepen its commerce offerings in Kerala.
These associations are expected to take the proforma EBITDA for Veranda Learning to over Rs 100 crores for FY 23-24 with the overall revenue expected to grow by 100% over last FY propelling Veranda to the next orbit of its growth as the company envisions to become a one-stop provider of affordable and high quality education services in India.
About Veranda Learning Solutions:
Founded in 2018, by the Kalpathi AGS Group - Veranda Learning Solutions is a public listed education technology company that offers a bouquet of training programs for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes. Veranda Learning Solutions’ platform combines technology, processes, and methodologies to provide high-quality, in-depth, personalised learning opportunities and content to learners across the country. Dedicated to creating an impact on students and delivering successful academic outcomes, Veranda adopts a multi-modal delivery system backed by a rigorous and disciplined learning framework. The company provides services through its subsidiaries: Veranda RACE, Veranda IAS, Edureka - the customer-facing brand of Brain4ce Education Solutions, Veranda HigherEd, and Edureka Learning Centre. Veranda Learning has forayed into high-demand financial courses such as Chartered Accountancy through its partnership with India’s premier CA test-preparation institute, J. K. Shah Classes.
Company Contact:
Ms. Saradha Govindarajan, CFO
Veranda Learning Solutions Limited
saradha.g@verandalearning.com
Investor Relations: Mr. Abhishek Bhatt Ms. Mahalakshmi Venkatachalam Ernst & Young LLP Abhishek.bhatt3@in.ey.com Mahalakshmi.venkatachalam@in.ey.com
Visit us at www.verandalearning.com | CIN L74999TN2018PLC125880
DISCLAIMER:
Certain statements in this document that are not historical facts, are forward-looking statements. Such forward-looking statements are subject to certain risks and
uncertainties like government actions, local, political, or economic developments, industry risks, and many other factors that could cause actual results to differ
materially from those contemplated by the relevant forward-looking statements. Veranda Learning Solutions Limited will not be responsible for any action taken
based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Veranda Learning Solutions
Affordability | High-quality Content | Outcome-oriented Approach
Investor Presentation | August 2023
Safe Harbor
• This presentation and the following discussion may contain “forward looking statements” by Veranda Learning Solutions Limited (“Veranda
Learning” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to
future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions,
expectations, estimates, and projections of the management of Veranda Learning about the business, industry and markets in which
Veranda Learning operates.
• These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors,
some of which are beyond Veranda Learning’s control and difficult to predict, that could cause actual results, performance or achievements
to differ materially from those in the forward looking statements.
•
Such statements are not, and should not be construed, as a representation as to future performance or achievements of Veranda Learning.
In particular, such statements should not be regarded as a projection of future performance of Veranda Learning. It should be noted that
the actual performance or achievements of Veranda Learning may vary significantly from such statements.
2
Agenda
01 Result Highlights
02 Company Overview
03 Growth Strategy
04 Industry Overview
05 Financials
Q1FY24 Performance
Key Financial & Business Highlights – Q1FY24
Revenue from Operations
144%
Gross Profit
223%
Key Business Highlights
Partnered with BAssure Solutions, a business that specialises in NextGen Staffing, often known as the Hire-Train-Deploy approach
) r
C
. s R n i (
s e
r u g
i f
l l
A
28.19
Q1FY23
68.90
Q1FY24
11.90
Q1FY23
38.38
Q1FY24
EBITDA
5.64
-13.34
PAT
-20.07
-19.33
Signed a share purchase agreement with Six Phrase, the career skill development enterprise in South India
development
largest
and
Partnership with PHIRE, a reputed placement- oriented training company for recruitment in the Private Banking and BFSI sectors
Tie-Up with Sreedhar’s College of Competitive Exams (CCE), a pioneer in the field of competitive exam coaching in Vijayawada
Partners with Talent Academy & Publications, a test prep coaching centre in Kerala
Q1FY23
Q1FY24
Q1FY23
Q1FY24
5
From the Chairman’s Desk
Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda
Learning Solutions, said “ I am extremely pleased to announce that we have turned EBITDA positive for the quarter
backed by remarkable revenue growth. This represents a significant milestone in the company’s journey and is a step
towards long-term value creation for all its stakeholders. This growth comes on the back of scaling of existing revenues
as well as cost optimisation exercises undertaken by the company.
In the last quarter, the Company announced the signing of definitive agreements with seven new businesses. In
addition, we have announced a partnership with Sreedhar's College of Competitive Exams which deepens our
competitive test prep presence in newer geographies whilst also expanding our presence in the publishing business.
These acquisitions will consolidate Veranda’s position as a comprehensive education player in the sector.”
6
Consolidated P&L Highlights
Particulars (Rs. Cr)
Revenue from Operations
Other Income
Total Revenue
Gross Profit#
Gross Profit Margin (%)
Operating Expenses
Advt & Business Promotion
Corporate Costs
Non-Operating Expenses
ESOPs/RSU
Growth Investment
One Time Transaction Costs
EBITDA
Finance Cost
Depreciation
Tax Expenses
PAT
Q1FY24
Q1FY23
68.90
1.58
70.48
38.38
28.19
0.44
28.63
11.90
55.71%
42.21%
10.27
5.58
1.53
0.00
0.00
5.64
8.45
18.96
(2.44)
(19.33)
8.47
4.93
2.07
1.38
0.00
(13.39)
1.73
6.14
(1.19)
(20.07)
Y-o-Y
144.42%
146.15%
222.53%
21.30%
13.25%
(26.05)%
-
373.25%
208.91%
104.28%
-
Q4FY23
48.41
0.39
48.80
23.85
49.27%
11.54
10.30
1.68
8.07
5.63
(20.20)
5.15
17.67
(4.34)
(38.68)
Q-o-Q
42.33%
44.42%
60.91%
(10.95)%
(45.79)%
(8.70)%
-
-
64.32%
7.25%
-
-
#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)
7
Veranda Company Overview
Veranda Learning – A Quick Glance
Veranda Learning Solutions is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline
blended formats to students, aspirants, and graduates professionals and corporate employees
S H T
G N E R T S Y E K
Strong Leadership:
Promoters have a collective experience of over 40 years in the education sector and proven track record
of entrepreneurial success
Diversified Offerings:
Provides a wide range of learning solutions through courses including UPSC, competitive exams courses,
professional courses, short term upskilling and reskilling courses to students and professionals
Presence across Platforms:
Courses offered through online, offline hybrid, offline blended, campus in campus and online live
instructor led learning models in various languages
Established Strong Brand:
SSC and created niche online education platforms across all segments. Edureka is a recognised online
Established a strong presence in competitive exam-oriented courses like Banking, SPSC, Insurance, RRB &
education platform for IT professionals that offers upskilling & reskilling courses
9
Our Journey so far
INCORPRATION
LAUNCHES & ACQUISITIONS
Incorporated in November 2018
• July’21:
Launched CA course offered by
Veranda CA
• Aug’21: Launched UPSC course offered by
Veranda IAS
• Sep’21: Acquired Edureka, enabling Veranda
to establish global footprints
J. K. SHAH CLASSES AND LAUNCH OF ELCs
• May’22: Launched Edureka Learning Centre
(ELCs)
• Oct’22: Acquired J. K. Shah Classes
2018
2020
2021
2022
2022
2023
• Apr’22: Listing on BSE & NSE
• Jan’23: Business Transfer Agreement with
• Dec’20: Acquired Content, brand,
education materials through Veranda
Race; commenced operations
• Dec’20:
Launched own mobile app
comprising all integrated courses
KEY ACQUISITION
LISTING ON EXCHANGES
Chennai Race
• May’23: Announces association with 7 companies under Veranda Administrative Learning Solutions
• July’23: Veranda Race joining hands with Sreedhar’s College of Competitive Exams
ACQUISITIONS IN VERANDA ADMINISTRATIVE SOLUTIONS
10
Strong presence in test preparations & professional skilling segments
Career-defining competitive exams
Hybrid Courses
•
•
•
TNPSC Group 2
• SSC
TNPSC Group 4
• Railways
TN TET
• Kerala PSC
• Banking
• CA Foundation
Professional courses
Exam-oriented courses
Upskilling and Reskilling courses
Online Courses
TNPSC Exam Coaching: • Group 2 & 2A • Group 4
Test Series: • TNPSC • Banking Test Batch • CA -all levels
Banking & SSC Exams: • Tamil • English • Malayalam • Telugu • Kannada
CA Exam Coaching: • CA Foundation • CA Intermediate • CA Final • CA Revision
UPSC Exam •
Integrated Learning Programme
• Prelims Learning
Programme
Kerala PSC Exam Coaching TNUSRB SI
Developed 340+ courses offered in Online, Offline Hybrid & Offline Blended
11
Edureka – A leading player in emerging technology training
Edureka Learning Centres
• A comprehensive learning platform aimed to
bridge the workplace-ready IT skills gap
Pioneering Instructor Led Live Online training
Industry leader in online professional & higher education segment
Upskilling & Reskilling courses
Online Courses
Visit us Link
Global customer presence majorly from US & UK
• Veranda acquired Edureka to build a full-stack
Education business virtually
• Launched Edureka learning with the first set of
Delivery Centres across 105 locations
Courses Offered
• Cloud Computing
• Architecture & Design
• DevOps
• BI Visualization
• Data Science
• Programming & Frameworks
Patterns
• Artificial Intelligence
• Databases
• Data Warehousing and ETL
• Operating Systems
• Frontend Development
• Digital Marketing
• Mobile Development
• Robotic Process
• Software Testing
• Project Management
Automation
• Blockchain
& Methodologies
• Data Science
12
Established a result oriented unique 360o Approach
Weekly lectures by
subject matter experts
with Q&A
Mentors assigned to
every student to track
and ensure progress
Right blend of offline &
online materials to support
the learning outcomes
Textbooks for all courses
for in-depth structural &
methodical learning
Chapter and paper level
mock tests for practice
Multi-level practice
programmes
13
Veranda Learning – Coaching centres across India
250+ Centres
(across all courses)
Wide Presence
Strong Hold Across India
Diversified Footprint across India
Building presence across India
Established strong offline presence in Southern and Western India
14
Proficient Team to drive the business
More than a decade of experience in the Education industry
Founded SSI in 1991, providing software education and IT training; key milestones include listing on NSE and BSE, formed a JV
with NASDAQ, acquired Albion Orion Company LLC and acquired controlling stake in Aptech Limited
Founded AGS Entertainment in 2003, a production house and later ventured into film exhibition via AGS Cinemas
Kalpathi S Suresh
Chairman & Executive Director
Founded Kalpathi Investments in 2007, a NBFC which invests in various ventures
Awarded the ‘Outstanding Entrepreneur of the Year’ in 1999 by Ernst & Young, India
Bachelor’s degree of Technology in Electrical Engineering, Master’s Degree in Electrical Engineering
Kalpathi S Aghoram
Non-Executive Director
Kalpathi S Ganesh
Non-Executive Director
Kalpathi Aghoram Archana
Non-Executive Director
Bachelor’s degree in Commerce
A decade of experience in finance,
education, IT, entertainment
Previously associated with TNCA and BCCI
Bachelor’s degree in Applied Sciences,
Master ‘s degree in Software Systems
A decade of experience in finance,
education, IT, entertainment
Master’s degree in Computer Science
15
Director of AGS Cinemas; producer of AGS Entertainment
Executive
15
Veranda Learning – Key Team Members (1/2)
Praveen Kumar President, Corporate Strategy
Saradha Govindarajan Chief Financial Officer
Pravin Menon Chief Marketing Officer
25+ years of experience in cross border acquisitions & pre-acquisition process in M&A
Previously worked with SSI and Deloitte
Haskins and Sells
Member of ICAI and ICWAI
11+ years of experience in the areas of
Finance, Strategy and Operations
Previously
led Qube Cinemas and Dr. Agarwal’s Eye Hospital as CFO & SVP, Strategy & Operations
BE from College of Engineering, Guindy and
MBA from XLRI, Jamshedpur
26+ years of experience in marketing in
EdTech, Media and Publishing businesses
Previously worked with Worldwide Media, Vikatan, Bennet Coleman & Network Digitech
Bachelor’s degree from University of Mumbai
Rajesh Pankaj Chief Program Officer
Venkatesh K Chief Instruction Delivery
Sivakumar Ganesan VP, Sales & Field Force Marketing
30+ years of
industry experience spanning technology, education & content development
Previously worked with Pearson, MPS, HCL
TalentCare, Everon Education and Hurix
B.Sc in Chemistry from Mahatma Gandhi
University and PG Diploma from NIIT
25+ years of experience in Strategy and execution
Previously worked with SSI, e4e, TCS, Primex and
Wellcorp at senior management roles
4+ decades of leadership and entrepreneurial sales & marketing and
experience across education domains
Previously worked with SSI, Aptech and Dunlop
Executive MBA from IIM-B and is a Certified
B.A.
in Economics from University of Madras
Corporate Director from IOD
and PGDM in Marketing from AIMA
16
Veranda Learning – Key Team Members (2/2)
Bharat Seeman CEO, Veranda IAS Ex-founder, Veranda Race
Lovleen Bhatia Co-Founder, Edureka
Santhoshkumar P CEO, Veranda Race
10+ years of experience in business leadership
Master’s degree in Technology from Anna University
18 years+ of technical
leadership and R&D
experience
B.Tech from IIT BHU
7+
years
of management at Veranda RACE
experience
in
operations
MBA from Illinois Tech Stuart School of Business and Master’s degree from Great Lakes Institute of Management 17
J K Shah Executive Chairman, JKSC
Pooja Shah Joint COO, JKSC
Vishal Shah Joint COO, JKSC
Founder, pioneer and a seasoned educationist
38+ years of proven industry experience in leading and managing CA coaching classes
Education enthusiast educational spaces
focused on disrupting hybrid
Before JK Shah, began her journey as an Articled
Assistant at Arvind H Shah & Co
B.Com in Accounting & Finance from University of
17
Mumbai and member of the ICAI
7+ years of experience in managing business development & operations and lead generation functions
Heads the online coaching vertical at JK Shah Classes
17
B.Com from NMIMS and member of the ICAI
17
Veranda Growth Strategy
Veranda Learning – Growth Strategy
I
S E G E T A R T S C N A G R O N
-
I
I
I
S E G E T A R T S C N A G R O
I
Strategic Acquisitions
Expansion Through PDCs
Evaluate targets for acquisitions and seek opportunities to acquire
brands and businesses which complement
its service offerings,
strengthen or establish its presence in the targeted domestic and
international market
Expand presence in existing & new markets, by increasing number of
PDCs*
through arrangements, wherein company operates online
blended and offline blended model of learning under revenue sharing
arrangements
Addition of new courses and offerings
Engaging with educational institutions like K-12 schools & colleges to deliver high-
quality digital content
Exam oriented courses for college entrance & admissions to universities
Expand its services to working professionals
Expand focus on B2C and B2B models
Expand focus on B2C^ and B2B# spectrum of the education sector
Significant growth opportunity in the B2C & B2B spectrum of education sector
*Preferred Delivery Centres #Business-to-business where company delivers services to the Corporate/ educational institutes ^Business-to-consumer where company delivers services directly to consumer such as Student / Learner
19
Strategic Acquisitions & New Launches to Scale business Operations
Veranda RACE
Edureka
Edureka Learning Centres
J.K Shah Classes
Veranda Administrative Solutions Pvt Ltd Sreedhar’s College of Competitive Exams
Acquired Chennai RACE in December 2020
Acquired Brain4ce Education Solutions (“Eduerka”) in September 2021
Launched Edureka Learning Centres in May 2022
Acquired in October 2022
Acquisition/investment with 7 Companies in May 2023
Veranda Race partnered with Sreedhar’s College in June 2023
Sep Oct Nov Dec
Jan
Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
Jan
Feb Mar Apr May Jun
Jul Aug Sep Oct
2021
2022
2023
Veranda RACE
Edureka
J. K. Shah Classes
Edureka Learning Centres (ELC)
Chennai RACE was engaged in running coaching institutes in Tamil Nadu, Kerala and Punjab. With this acquisition, Veranda expanded offline & Hybrid operations.
Veranda expanded its offerings in academic learning, professional skilling in & corporate to trending technologies.
training services
courses
related
Through J. K. Shah Classes Veranda collaborates with India’s leading brand to offer courses like CA, CS, CMA, CFA, ACCA, etc
The company intends to deliver high quality, affordable, and experienced instructor led courses across tier 2 and tier 3 towns.
Revenue Contribution in FY23 Revenue Contribution in FY23
Revenue Contribution in FY23 Revenue Contribution in FY23
Acquired Majority Stake in J. K. Shah Acquired Majority Stake in J. K. Shah
50.5% 50.5%
47.5% 47.5%
76.0% 76.0%
20
Association with seven companies under VALS (1/2)
Acquiring and Investing across seven businesses through its Wholly Owned Subsidiary Veranda Administrative Learning Solutions Private Limited (VALS)
Total valuation of acquisitions is over Rs. 400 crore
1
2
Educare Infrastructure Educare Infrastructure
About: Educare offers services in various areas of management like infrastructure planning & development, staff recruitment & training, sales & marketing, affiliation & statutory compliances to 6 schools with over 4,500 students studying in it
Rationale: Acquiring Educare Infra would give Veranda direct access to K-12 primary education segment which is the largest education market
Six Phrase Six Phrase
About: An institution that has been engaged in employability training, skill development, career guidance services, technical training, aptitude, and soft skills training, LMS - E-learning and online assessment portal to students across colleges and universities
Rationale: This acquisition will give Veranda Learning access to the deep and wide-spread network of colleges of Six Phrase and allow for cross- sell opportunities for Veranda
3-4
Neyyar Academy & Neyyar Education Neyyar Academy & Neyyar Education
About: Neyyar Academy (“Talent”) is a test prep coaching centre in Kerala that provides coaching classes for PSC, SSC, RRB & CLAT exams
Rationale: Acquiring Talent would give Veranda Race leadership in Kerala PSC, SSC and other related test-prep segments in Kerala and help expand publication business across the nation
21
Association with seven companies under VALS (2/2)
5
6
7
PhirePhire
About: Phire is a placement-oriented training company that provides expert training for recruitment in Private Banking and BFSI sector
Rationale: Acquisition of Phire is a strategic move that allows Veranda Race to vertically integrate in banking test prep segment
Smart Bridge Smart Bridge
About: SmartBridge is an Ed Tech organization that provides outcome-based experiential learning programs on emerging technologies such as IoT, ML, Data Science, AI, and Robotics
Rationale: Would give Veranda Learning access to expertise in Skill Development initiatives of Govt, establishing relationships with public sector decision-makers, and a wider reach, allowing for more targeted and effective solutions
BAssure BAssure
About: BAssure is the company that runs a Hire-Train-Deploy model on behalf of its clients . They offer talents with industry-needed skills such as Modern Mobile/Web App Development, Data Engineers, Full-Stack, Microservices, and API Developers with Cloud, DevOps etc
Rationale: Acquiring BAssure would allow Veranda Learning to double down on its technological efforts of building a truly world-class EdTech company
22
Collaboration with J. K. Shah – India’s leading institute for CA test prep
Forayed into an imperative segment of high-demand financial courses such as Chartered
Accountancy through acquisition of India’s premier CA test-preparation institute, J. K. Shah Classes.
Veranda acquired J. K. Shah Classes (JKSC)
Veranda will provide its rich technological expertise meanwhile leveraging J. K. Shah’s strong
brand recognition and legacy; additionally Veranda will aid JKSC to establish presence in
the South, North, & East of India, along with strengthening its online and hybrid offerings.
Synergy of Veranda & J. K. Shah Classes
39 years of legacy
~75 Centres in India
Veranda has acquired 76% stake as on 31st Mar 2023.
Deal Status
1,870 CA Rankers Since 2001
JKSC’s alumni includes marquee names like Mr. Kumar Mangalam Birla, India’s leading industrialist and
Chairman of the Aditya Birla Group; Mr. Piyush Goyal, Hon’ble Minister of Commerce and a member of
214 CS Rankers since 2016
the Rajya Sabha; Mr. Nilesh Shah, MD of Kotak Mahindra AMC.
Marquee Alumni
23
Industry Growth Drivers
Geographical Segmentation - Global
Region
Market Size (2021)
Market Size (2027)
Growth Rate CAGR (2021-27)
Asia Pacific Countries (APAC)
$107.63 BN
$277.39 BN
17.09%
North America
$52.62 BN
$109.27 BN
12.95%
Europe
$39.62 BN
$92.26 BN
15.13%
Latin America
$29.68 BN
$72.95 BN
16.17%
Middle East & Africa
$25.25 BN
$53.52 BN
13.34%
Source: Arizton Advisory & Intelligence Report
25
Indian Ed-tech Sector – Market Size
Growth Rate
19.17% CAGR
(2021-2027)
90
80
70
60
50
40
30
20
10
0
Edtech Market in India 2021–2027 ($ billion)
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Revenue Growth Rate
2021
27.41
2022
30.48 11.20%
2023
35.23 15.56%
2024
41.98 19.18%
2025
51.25 22.07%
2026
63.25 23.41%
2027
78.5 24.12%
Source: Arizton Advisory & Intelligence Report
26
Indian Sector – Boom for Upskilling & Reskilling Courses
Upskilling and Reskilling – A budding requirement
A McKinsey global survey in February 2020 found that 9 in 10 executives and managers are either already facing skills gaps in their organizations or expect gaps to develop within the next 5 years
HR providing employees with Upskilling & Reskilling Training
Model of employees receiving Upskilling & Reskilling Training
Employees prefer to work with company providing Upskilling & Reskilling Training
KEY SURVEY RESPONSES
Upskilling
31%
Reskilling
2%
Both
59%
69%
20%
26%
11%
Never
8%
Source: McKinsey global survey in February 2020
Online Offline
Both
Yes No
74%
27
Financial Performance
Financial Highlights
Total Revenue (in Rs. Cr) Total Revenue (in Rs. Cr)
EBITDA (in Rs. Cr) EBITDA (in Rs. Cr)
Revenue Break-up (Q1FY24) Revenue Break-up (Q1FY24)
199.92
5.64
FY22
FY23
Q1FY24
39%
61%
75.60
70.48
FY22
FY23
Q1FY24
Enrolments Enrolments
91,667
56,819
40,386
FY22
FY23
Q1FY24
-39.05
-33.58
Online %
Offline %
ARPUARPU
Brain4ce (Edureka)
Veranda Race
31,323
30,918
15,825
12,609
12,699
19,404
FY22
FY23
Q1FY24
FY22
FY23
Q1FY24
29
Veranda Learning Solutions
Ms. Saradha Govindarajan, CFO
saradha.g@verandalearning.com
Let’s Connect
Ernst & Young, LLP
Mr. Abhishek Bhatt
abhishek.bhatt3@in.ey.com
Ms. Mahalakshmi Venkatachalam
mahalakshmi.venkatachalam@in.ey.com
Veranda Learning Solutions Ltd, 34, Thirumalai Pillai road, T. Nagar, Chennai, Tamil Nadu – 600 017