Educomp to Raise Up to $500 Million

By Harshil Karia • May 27, 2008

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This is a guest post by Abhinandan Nardekar. He is a student at BITS Pilani.

Educomp Solutions Ltd on Monday said that the members of the company have passed the resolution to raise up to $500 million. The resources will be raised through ADR, GDR, FCCB, or QIP, with requisite majority. This announcement comes almost immediately after it’s recent announcement of a stratetigic acquisition of 51 per cent stake in US-based eLearning company, Learning.com, for about $24. 5 million.

Educomp Solutions Ltd, incorporated in 1994, is now the largest technology driven education company in India. It serves over 9000 schools and 6 million learners and educators across the world.

Earlier, the company had announced plans to invest around Rs 125 crore to set up over 500 tutorial centres by 2010. Last year, Educomp entered the offline education space with a war chest of over Rs 2,000 crore for setting up around 150 schools over the next four years.

I think the bulk of the resources raised will be used to finance their ambitious expansion. Education as a sector in India offers enormous business opportunities. The company has posted extremely robust results for the previous financial year. It already has a tie-up with 6,000 schools across country under public-private partnership of information and communication technologies (ICT) programme of Sarva Siksha Abhiyan (SSA) and plans to to increase the number of tie-ups with schools to 12,000-15,000 by the end of this fiscal . Educomp hardly has any competition in this sector. There is no other company with comparable size and weight for providing educational services in India. With very little hope for the approval of FDI in the education sector & the Government’s major thrust on primary education in it’s 11^th Five Year Plan, EduComp clearly looks like a smart investment opportunity at the present moment.

Thanks Abhinandan for the article. If any of you wish to write in guest posts, feel free to mail us. If you wish to share something - Follow us on Twitter.

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Categories: Technology
Tags: Educomp, Evalueserve, globalscholar, ICT, kal raman, learning.com, PPO, Sarva Siksha Abhiyan

About the Author

Harshil Karia

I try and maximize my learnings and this is my humble attempt at sharing a part of whatever little i tend to observe. Welcome to a space that i hope will be at least a partial extension of me!