Edserv is building competency against other education based companies through its acquisition led strategy. So after acquiring startup 2tion and SchoolMATE it is set to acquire Smart Learn WebTV for a total consideration of $1 million (4.6 crores).
Smart Learn WebTV provides e-learning and tutorial courses for IIT JEE and AIEEE aspirants.It currently has 10,000 registered users and expects to quadruple its user base to more than 50,000 user base for all the services by next year. It even expects to achieve total turnover of Rs.20 crores by 2010-2011 thus increasing its reach on Rs.10000 crore coaching market for IIT and AIEEE in India.
Smart Learn is also looking at entering CAT and other related competitive entrances exams in phased manner. It currently provides services ranging from printed materials for explanation of core concepts to streaming video via its portal. The acquisition of Smart Learn will help Edserv close the gap in IIT entrance tutoring with other small competitors like Askiitians.
According to EdServ CEO S Giridharan,“We were impressed with the list of professors comprising ex-IITians with decades of experience in IIT JEE training and young rankholders with a passion for teaching. With this, we target to more than double the student base to over 25,000 students for IIT JEE and an equal number for AIEEE and expects to achieve at least Rs 20-crore revenue from this business segment.”
Edserv has already acquired strength in school tutoring space through the acquisition of 2tion.com. SchoolMate acquisition at the same time will help Edserve to provide better offline learning management & monitoring services. WATBlog earlier predicted more acquisitions from industry peers like Edserv so as to increase their reach in the fastest growing service industry in India.
The acquisition strategy adopted by Edserv could be very effective in long run as all the acquisition are clinched at lower valuations and already cater to large markets. The recent acquisitions will also not burden company financial position as its growing profitability will be enough to meet funding requirements through internal accruals.