Even after 7 acquisitions, Veranda Learning is in no mood to stop. Here’s why

The Indian edtech ecosystem has seen some roller-coaster moments in the last few years. While the Covid-19 pandemic boosted the online education industry, the years that followed established that a hybrid teaching model is more likely to survive and thrive.

One of the companies that are trying to get a firmer hold of the edtech market is Chennai-based Veranda Learning. The company announced in May this year that it would be acquiring or investing in different seven edtech companies. Creating synergy between different age groups is the mission of the company’s founder, Suresh Kalpathi. A few weeks back, it also acquired Andhra Pradesh-based test-prep player Sreedhar's College of Competitive Exams.

In a conversation with Business Today, the entrepreneur gave a deeper insight into these acquisitions, what they would entail, and why he is in no mood to stop.

“These acquisitions are very synergistic…” says Kalpathi adding, “We are creating a platform where we can stitch together different sets of programs for school, college, and career advancement.”

Veranda has made investments in companies such as Educare Infrastructure, Six Phrase, Smart Bridge, Talent Academy, Talent Publications, Phire Learning, and BAssure. From K-12 to upskilling, these companies cater to different segments and the total value of these acquisitions is over Rs 400 crore.

Kalpathi also points out that these companies are “profitable” and have “strong business models.” He believes that events such as funding winter have to be attributed to bringing back the focus on profitability. “The acquired companies are profitable businesses whose founders are responsible for generating revenues and profits apart from having hopes and aspirations.”

Founded in 2018 by the Kalpathi AGS Group, the stock market-listed education technology company offers a bouquet of training programs for competitive exam preparation, including state public service commission, banking, insurance, railways, IAS, and CA.

Moving forward, the company’s focus will be helping students in career advancement and also cater to a pool of schools that want to adopt the National Education Policy (NEP).

“K-12 has a massive demand because that is also the place where you skill students up,” he says and adds that the Indian government is also keen to bring a lot of new age learning tools and technologies.

The company is open to partnering with companies that contribute to its growth story. The latest example to affirm its argument is the acquisition of test-prep player Sreedhar's College of Competitive Exams which according to Kalpathi will “deepen our competitive test-prep presence in newer geographies whilst also expanding our presence in the publishing business.”

Sreedhar’s College of Competitive Exams is a legacy player that provides coaching for clearing different exams including coaching for Bank clerks, POs, RRB, and LIC.

“These acquisitions will consolidate Veranda’s position as a comprehensive education player in the sector. Even in the future, we will look at businesses that will take our growth story forward and become an end-to-end solution provider in the education space,” he concluded. 
Kalpathi is in no mood to pause his acquisition spree anytime soon.

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