Education Markets and Deals Roundup — 16th Edition
Global education companies showed remarkable performance in the recent quarter. Notable developments include Duolingo’s 38% growth in bookings and improved EBITDA margins, jump in stock prices of Stride Inc’s by 60.67% and New Oriental Education’s revenue grows by 30.5% , expanding to 1,089 centers.
In India, NIIT Learning Systems showed profit growth of 21.66%, while Veranda Learning Solutions achieved 72.69% revenue growth.
Activities in funding market include Eruditus securing USD 150 million in Series F funding , while upGrad raised USD 60 million from Singapore’s Temasek in a Series C round, valuing the company at USD 2.25 billion.
I. Public Markets
Market Multiples Snapshot — Global and Indian Education (Source: Koyfin)
Companies dealing in the education sector demonstrated strong performance in their latest quarterly results, showcasing significant revenue growth and business expansion. The sector’s positive trajectory reflects increasing demand for educational services and successful implementation of growth strategies. This trend indicates a healthy market environment for education-focused enterprises.
B2C — Global EducationB2C — Global Listed Players Comps
Global B2C education companies delivered strong quarterly results, demonstrating improved operational performance and expanding user engagement, thus expecting a positive industry momentum for the upcoming year.
Rapid Round-up
Duolingo reported exceptional Q3 2024 results with 38% growth in total bookings and 45% increase in subscription bookings to USD 176.3 million. The company’s EBITDA margin improved to 24.7% from 16.3% year-over-year. Growth was driven by increased user engagement, higher family plan adoption, and success of Duolingo Max’s AI features.The share price of Stride Inc has increased by 60.67% in current month which is attributable to favourable EV/EBITDA ratio, fundraising for associate companies in pharmaceutical sector, strong financial performance surpassing expectations and growth in enrollments.New Oriental Education & Technology Group’s Q1 FY2025 results show 30.5% revenue growth to USD 1,435.4 million, driven by non-academic tutoring, intelligent learning systems, and East Buy private label business. The company expanded its physical presence to 1,089 schools and learning centers, up from 793 year-over-year.Laureate Education has approved a new stock repurchase program to acquire up to $100 million of the Company’s common stock. The Company intends to finance the repurchases with free cash flow, excess cash and liquidity on-hand, including available capacity under its revolving credit facility.Adtalem Global’s Q1 FY2025 results revealed strong growth with enrollment rising 11.2% to 90,140 students and revenue increasing 13.2% to USD 417.4 million. The Medical and Veterinary segment maintained positive enrollment trends. Growth was driven by Chamberlain University’s expanded nursing programs, AI partnerships, and successful accreditation renewals. This had a positive impact on the share price for the current quarter.Udemy exceeded Q2 expectations, with revenue and adjusted EBITDA margin surpassing guidance. The company reached USD 500 million in annual recurring revenue, growing 14% YoY. Success stemmed from a robust user base, strategic initiatives in Mexico, cost optimization, and investments in AI capabilities.
2. B2B — Global Education
B2B — Global Listed Players Comps
Rapid Round-up
Pearson and ServiceNow announced a global partnership to boost workforce development in the AI era. ServiceNow will incorporate Pearson’s Credly credentialing system into its platform. Meanwhile, Pearson reported 5% sales growth in Q3 across all divisions, leading to a 17.92% increase in share price.Grand Canyon Education reported Q3 service revenue growth of 7.4% year-over-year, driven by GCU’s 4.0% enrollment increase and 8.1% growth at off-campus sites, plus higher per-student revenue. Operating margin rose from 18.7% to 20.2%, partly due to GCU’s fall semester timing shift, which moved USD 2.2M from Q4 to Q3. This has led to a strong uptick in its share prices.The share price of Bright Horizons Family Solutions has been on a continuous decline due to its high PE ratio compared to its competitors based on yearly performance and operational KPIs.
3. Indian Education
There has been a fall in share prices of Zee Learn and Aptech Limited due to declining revenue and profits for the last two quarters and low return on assets ratio.
Indian Listed Education Players Comps
Rapid Round-Up
NIIT Learning Systems results for the quarter showcase mixed but promising performance with 21.66% profit increase and 4.06% revenue growth. EPS reached ₹4.21, up from 18.6% in the prior year. Operational optimization and growth initiatives earned a ‘Strong Buy’ rating from various renowned analysts, indicating solid foundation in educational technology.Veranda Learning Solutions released Q1FY25 results wherein operating revenue reached INR 118.99 crore (up 72.69%) with EBITDA at INR 27.61 crore with a target revenue of INR 600 crores for FY25. Growth was primarily driven by partnerships with UTS and Jumeira University for growth in Middle East and acquisitions worth INR 400 crore.Aptech Limited launched India’s first virtual production academy in Mumbai with LED volume wall and advanced lighting. Program offers micro-credentials and employment pathways with industry mentorship, focusing on cutting-edge media production skills.S Chand Group partnered with Embibe to integrate AI learning tools into CBSE Science curriculum. Digital transformation through myStudygear and NSH Omnibus apps achieved one million combined downloads, showing strong market acceptance.
II. Private Markets
Equity Financing Snapshot — Indian Education (Source: Tracxn)
Funding Round-Up
Eruditus raised USD 150 million in Series F funding, led by TPG’s The Rise Fund, with participation from existing investors including Softbank Vision Fund 2 and others. The company plans to invest in AI technology, expand government and enterprise services, and strengthen its presence in India and APAC regions.EdTech company upGrad completed an USD 80 million funding round at a valuation of USD 2.25 billion. Singapore’s Temasek contributed USD 60 million, while co-founder Ronnie Screwvala acquired Bharti Enterprises’ 1% stake for USD 20 million.Bhanzu, math education platform secured USD 16.5 million in Series B funding, with Epiq Capital and Z3 Partners leading the round. The company plans to use these funds for US market expansion, adding to its current presence in India, the UK, and the Middle East.Edu-wealth startup Zinc raised USD 25.5 million in seed funding, led by Nexus Venture Partners. The funding is expected to support product development, financial licensing, and creating specialized investment solutions for Indian families pursuing international education.Bollywood actor Ayushmann Khurrana made a strategic investment in and became the brand ambassador for Birla Brainiacs, a hybrid homeschooling platform. The platform aims to revolutionize Indian education by combining online and offline learning methods.
LoEstro Advisors is an investment banking firm specializing in sell-side fundraise and M&A advisory, along with a strong consulting arm.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1billion + worth of combined deals closed across education, healthcare, consumer, and technology sectors.
