Veranda Learning, a listed enterprise offering end-to-end solutions in the education space, has announced that it has received approval to raise funds of up to INR 425 crore through the issuance of Non-Convertible Debentures (NCDs) to funds managed and arranged by BPEA Investment Managers Private Limited (BPEA Credit). This strategic move aims to fuel the company’s growth trajectory by financing acquisitions, refinancing existing loans, and bolstering working capital requirements.
Veranda Learning, started in 2018 by the Kalpathi AGS Group, provides a wide range of training programmes for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a variety of professional skilling and upskilling programmes. The platform integrates technology, processes, and methodologies to deliver high-quality, in-depth, personalized learning opportunities and content to students nationwide. The organization offers services through several brands, including Veranda RACE, Veranda IAS, Edureka, Six Phrase, Veranda HigherEd, Edureka Learning Centre, SmartBridge, BAssure, Talent Academy, Talent Publications, PHIRE, Sreedhar’s CCE, JK Shah Classes, VerandaK12, and Logic School of Management.
Commenting on the latest development, Suresh Kalpathi, Executive Director & Chairman of Veranda Learning, said:
This decision aligns with Veranda Learning’s strategic vision to further solidify our position as a leader in the education space. The proceeds from the NCD issuance will be instrumental in supporting our expansion plans, enabling us to pursue strategic acquisitions, enhance operational efficiencies, and drive long-term value creation for our stakeholders.
Veranda Learning remains focused on driving innovation, expanding its reach, and delivering value-added solutions to its customers while consistently delivering strong operating margins. The firm’s strategic decision to raise debt through NCDs underscores its confidence in the education sector’s future growth prospects and its ability to capitalize on emerging opportunities.
Speaking on this association, Ms Kanchan Jain, Head of BPEA Credit Group, commented:
We are pleased to partner with Veranda Group, a leader in India’s education space, to support initiatives that transform education delivery and enhance access to quality education, thereby creating a lasting impact. This investment aligns with our Fund’s objective of participating in growth-oriented businesses and partnering with industry leaders by providing bespoke capital solutions.
The NCD is part of a more significant fundraising effort to be completed in the next three to six months. As discussed in its long-term vision, the company will balance the risk profile by raising equity-like instruments in the future. This will be used for further acquisitions and fill the gaps in the Veranda ecosystem. The company is expected to complete these acquisitions by the first half of FY25, strengthening its position as a market leader in the education sector.
Atul Thakkar, Director, Anand Rathi Investment Banking, commented on the transaction:
Anand Rathi Group sees immense potential in this sector and is pleased to have facilitated transactions exceeding US$450m in FY24 alone, including this significant deal. This transaction marks a milestone for the education sector, fostering consolidation in cash-generating assets. It will attract investor support for good quality platforms like Veranda. The proceeds will be strategically used to acquire complementary assets and to restructure. We’re committed to supporting Veranda’s long-term goal of becoming the country’s leading education platform, offering exceptional results for students and inviting other ecosystem players to join a listed company.
Anand Rathi Advisors, a full-service investment bank specializing in mid-market firms in India, led the financing arrangements for the company.
