Veranda Learning to Raise up to Rs. 250 Crores through Preferential Issue

Veranda to acquire a 51% stake in BB Publications Private Limited and a 65% stake in Navkar Digital Institute Private Limited

CHENNAI, 11TH DECEMBER 2024: Veranda Learning Solutions, a listed enterprise providing end-to-end solutions in the education space, has received approvals to raise funds for an amount of up to Rs. 250 Crores through preferential issue. The funds raised will be directed toward acquisitions, deferred consideration payouts, and to grow its existing business. This preferential raise is part of the broader fund-raising plan to be completed this financial year. 

“We are thrilled with the robust response to the private placement driven by marquee investors. This successful fundraising equips Veranda with a robust capital base to drive our next phase of growth and demonstrates the confidence of investors in the vision and our potential for growth. We’re on track to close all acquisitions in this financial year, and no further equity dilution in Veranda Learning is expected beyond this Financial year," said Executive Director and Chairman of Veranda Learning, Mr. Kalpathi S Suresh.

Veranda Learning Solutions also announced its plan to acquire 51% stake in BB Publications Private Limited (“BB Virtuals”) for a consideration of Rs. 126.2 Crores and 65% stake in Navkar Digital Institute Private Limited for consideration of Rs. 45.5 Crores. These acquisitions will strengthen Veranda’s CA/CMA coaching offerings, reinforcing its position as a leader in commerce education throughout India.

Unlocking Value through a Four-Pillar Strategy: Veranda Learning Solutions is focused on unlocking value through its strategic 4-pillar approach, encompassing academics, commerce, government test preparation, and study abroad. The commerce vertical has already demonstrated strong performance and is on target to reach an EBITDA of Rs. 120 Crores for FY25 and is expected to achieve Rs. 100 Crores at the PAT level in FY26. To further enhance operational efficiency and strategic focus, Veranda is planning to undertake a corporate restructuring exercise to merge the existing companies in alignment with these segments. VLS is committed to initiating a value creation cycle across all four pillars, aiming to scale and monetize each segment effectively. 

BB Virtuals: Expanding online CA Preparation Capabilities of Veranda XL

BB Virtuals, founded by renowned CA educator Bhanwar Borana, is an established online platform for CA aspirants, known for delivering high-quality, accessible learning resources. CA Bhanwar Borana, with over 12 years of teaching experience, has played a crucial role in guiding students to achieve top ranks, having taught more than 200,000 students and produced over 500 rank-holders over the years.

With BB Virtuals’ strong online presence, Veranda will amplify its reach, offering a wider range of resources to support students pursuing professional qualifications in the Commerce segment.

Mr. Bhanwar Borana, Founder of BB Virtuals said “By Partnering with Veranda and leveraging the strength of JK Shah Classes, we will enhance our ability to provide aspirants with the tools and resources they need to succeed in their CA and CMA journeys. Together we will set new standards in commerce test preparation.”

Navkar: Strengthening Veranda XL’s Offline Framework for CA/CMA Coaching

Navkar, founded by educator Hiteshkumar Shah, is an established offline platform for CA aspirants in Gujarat. With over 17 years of teaching experience, Hitesh Shah has built a strong reputation in the education sector. Under his leadership, the institute has become a prominent provider of professional education, specializing in courses for CA, CS, and CMA.

Mr. Hitesh Shah, MD of Navkar Institute, expressed his enthusiasm about the collaboration, stating, "We are thrilled to work alongside JK Shah Classes and Veranda Learning, leveraging our combined strengths to grow the business and continue supporting students in achieving their professional dreams.”

These acquisitions complement Veranda’s existing portfolio of being a leader in CA/CMA/ACCA training. “By integrating these companies with JK Shah Classes, we are building a powerful alliance that provides students pursuing commerce education with unparalleled academic support,” said Prof. J.K. Shah highlighting the strategic acquisitions undertaken by Veranda.

Professionalizing the Board: The Company had appointed three new board members—Prof. Jitendra Kantilal Shah, Prof. Ashok Misra, and N. Alamelu—as a part of its larger initiative to professionalise the board. Prof. Jitendra Kantilal Shah, the founder of JK Shah Classes, has been a pioneering force in the field of education for over 40 years. Prof. Ashok Misra brings a unique blend of academic and industry expertise to Veranda’s board. A former Director of IIT Bombay, Prof. Misra, was also a Distinguished Professor at the Indian Institute of Science (IISc), Bengaluru, he has served on the boards of several prestigious institutions, including IIT Roorkee, IIT Delhi, Reliance Industries Limited, National Thermal Power Corporation (NTPC), and continues to be on the board of Kirloskar Electric. The company aims to further strengthen the Board and add experts and professionals with reduction in number of Promoter directors.

Professional Management: In line with its growth trajectory, the Board has approved the elevation of Mr. Aditya Malik to the role of Group Chief Operating Officer (COO). Mr. Aditya is a seasoned leader with over 30 years of experience across industries and has demonstrated experience in the fields of revenue expansion, risk management, and global operations. Mr. Malik, previously the CEO of Veranda HigherEd, has played a key role in driving the success of Veranda’s higher education initiatives. The operating management has transitioned into a fully professional and highly competent management. Mr. Vivek Sapre is the Group CHRO who has joined Veranda with more than 10 years of experience in handling HR challenges across industries. Mr. Pravin Menon, Chief Marketing Officer, has worked with leading media and publication businesses and has been associated with Veranda for more than 2 years. Mr. Rajesh Pankaj, Chief Program Officer, carries 30 years of experience in the education and software industry, having worked with Pearson, Macmillan, HCL, SSI. Ms. Saradha Govindarajan, Group CFO, associated with the company for more than 2 years has significant experience in raising funds, mergers and acquisitions and handling large scale P&Ls.