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Chennai-Based Edtech Veranda Learning To Acquire Tapasya Education Institutions

Post-acquisition, Veranda will broaden its Commerce Higher Education offerings by leveraging Tapasya's network, particularly in CA and competitive exam courses

Chennai-Based Edtech Veranda Learning To Acquire Tapasya Education Institutions
POSTED ON January 12, 2024 3:44 PM

Veranda Learning Solutions, a listed enterprise offering end-to-end solutions in education, announced that it will acquire 50 per cent of Tapasya Educational Institutions Private Limited (TEIPL) for a consideration of Rs 120 Crore through Veranda XL Learning Solutions Private Limited, a material subsidiary of the company.   

Founded in 2009, Tapasya Educational Institutions serves 19 Inter/ PU Colleges and 10 Degree Colleges across 13 locations in Telangana and Karnataka, with a student base exceeding 13,000.  

The institution offers a diverse range of educational services, covering Intermediate, Pre-University, and Graduation courses (e.g., B.Com, BBA), Professional Courses (CA and CMA), and integrated programmes. Anticipated figures for TEIPL in FY24 include a revenue of Rs 65 crores and an EBITDA of Rs 26 crores. 

After the acquisition Veranda will expand its offerings in commerce higher education by utilising Tapasya's network, especially in CA and competitive exam courses. In return, Tapasya benefits from Veranda's expertise in curriculum development, technology integration, and student support services, the company added in its statement. 

Muppala Sreedhar, founder and chairman of Tapasya Institutions, shared his perspective, stating, “Joining forces with Veranda Learning Solutions marks a significant milestone for Tapasya. We believe that our shared vision for educational excellence and Veranda’s proven track record will result in a powerful synergy, benefiting students and educational stakeholders.”  

Suresh Kalpathi, executive director and chairman of Veranda Learning Solutions, expressed enthusiasm about the collaboration, stating, “This acquisition aligns seamlessly with our commitment to delivering high-quality education solutions. The goal is to touch 1 million students in FY24 and this endeavour of ours will take us in that direction. Tapasya’s strong presence in Telangana and Karnataka perfectly complements our expansion strategy. Together, we look forward to creating a more robust and integrated educational ecosystem for students in these regions.”  

Founded in 2018 by the Kalpathi AGS Group - Veranda Learning Solutions is a publicly listed education 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 programs. The company forayed into high-demand financial courses such as Chartered Accountancy through India’s premier CA test-preparation institute, J. K. Shah Classes.  

The company provides services through a host of brands: Veranda RACE, Veranda IAS, Edureka, Six Phrase, Veranda HigherEd, SmartBridge, Talent Academy and Publications, Sreedhar’s CCE and others, it said. 

In the September quarter, the company's consolidated loss decreased to Rs 1.53 crore from Rs 21 crore in the same period the previous year, primarily attributed to a substantial increase in operating revenue. The Chennai-based edtech firm reported a nearly three-fold surge in revenue from operations, reaching Rs 98 crore, as disclosed in November last year, as per the reports. 

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