Education Markets and Deals Roundup — 16th Edition
The Education market shows mixed performance, with most stocks rising despite challenges. The sector witnessed strategic movements, including Instructure’s $4.8 billion acquisition by KKR and Dragoneer, and new AI powered solutions by Duolingo.
Indian Education markets saw varied performance, with NIIT experiencing stock surge, Veranda Learning Solutions launching an accounting program, and Aptech introducing a virtual production academy.
The education sector’s funding landscape has experienced a relatively subdued phase this month compared to October 2024. However, market sentiment suggests potential forthcoming developments that could reinvigorate investment activity in the near term
I. Public Markets
Market Multiples Snapshot — Global and Indian Education (Source: Koyfin)B2C Global Education
In the current month, B2C company stock prices have generally trended upward, buoyed by strong financial performance and innovative new product offerings. However, IDP Education and Udemy stands as a notable exception, with its stock impacted by a projected 25% decrease in student volumes and not meeting investor expectations respectively.
B2C — Global Listed Players Comps
Rapid Round-up
Duolingo is going to launch its AI-powered video-calling feature ‘Call with Lily’ in India sooner this month to boost revenue. The feature, part of Duolingo Max subscription starting at INR 99, allows users to practice conversations with a virtual character. This would result in an expansion of its tech team in India since it views the Country under top-three potential market for its growth.Chegg reported Q3 2024 financial results, acknowledging significant challenges from Google’s AI search and generative AI adoption. Despite a 13% revenue decrease to USD 136.6 million, Company remains optimistic for future growth. The company is undertaking a restructuring, reducing headcount by 21% and expecting USD 60 – 70 million in annual cost savings for FY25. Overall, Chegg continues to focus on providing high-quality educational support and individualized learning experiences for students as its key business segment.
2. B2B — Global Education
B2B — Global Listed Players Comps
The B2B Education sector experienced a temporary market downturn, which was subsequently followed by a robust stock market recovery, driven by strategic investment trends and market dynamics. The sector saw a major acquisition of a Listed Company by 2 marquee private equity investors
Rapid Round-up
Instructure Holdings, Inc., owner of the Canvas LMS platform, has been acquired by KKR and Dragoneer for USD 4.8 billion, thereby delisting from NYSE. The deal has potential to accelerate global growth, with plans to reach USD 1B revenue by 2028 and support 200 million learners worldwide.Docebo and Deloitte have formed a strategic alliance to help organizations transform learning systems. By combining Docebo’s AI-powered learning technology with Deloitte’s consulting expertise, they aim to create agile learning ecosystems that drive business growth and operational efficiency across commercial and government sectors.
3. Indian Education
Indian Listed Education Players Comps
Indian stock markets have witnessed a significant uptick this month, with numerous companies reporting robust financial performance for the September quarter. However, Veranda and Career Point stand as exceptions, having struggled with negative cash flows and subdued profitability over the past year.
Rapid Round-Up
The share prices of NIIT surged in the backdrop announcement that Ramesh Damani, Ace Investor, acquired 0.59% stake in the Company.Veranda Learning Solutions partnered with NSDC and UK’s IAB to launch the Certified International Accounting Professional (CIAP) program. This six-month initiative aims to equip commerce students with globally recognized accounting skills, addressing the growing demand in Outsourced Accounting Services and preparing them for lucrative career opportunities.Aptech’s Virtual Production Academy has started operations in Mumbai as India’s first comprehensive virtual production institute. It offers cutting-edge training in ICVFX, motion capture, and emerging digital filmmaking technologies. The academy equips students with advanced skills for film, television, gaming, and other creative industries through state-of-the-art facilities and industry-standard tools. Students gain practical experience and placement opportunities with leading production houses
II. Private Markets
Rapid Round-Up
Uniplay introduces an innovative AI-powered Learning Management System that transforms corporate training through immersive gameplay. By converting traditional content into interactive mobile experiences, the platform leverages game mechanics, personalized learning paths, and instant feedback to dramatically enhance employee engagement and skill development.Unacademy has clarified on the rumours by denying its potential acquisition news by Allen Institute.Equity Financing Snapshot — Indian Education (Source: Tracxn)
Funding Round-Up
Admissions platform Creanovation Technologies has secured Rs 5 crore from Physis Capital. Founded by Bikash Sahoo, the startup offers AI-powered workflow solutions for educational institutions. With a track record of doubled annual revenue and profitability, CTPL plans international expansion while providing industry-collaborative courses through its NextGen Academy.
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.
