Veranda Learning Secures Rs 425 Crore Debt Funding to Fuel Education Sector Expansion

Chennai, India: Veranda Learning, a prominent education company headquartered in Chennai, has secured Rs 425 crore in debt funding through non-convertible debentures (NCDs) issued to BPEA Credit, an arm of BPEA Investment Managers Private Limited. This significant investment fuels Veranda's ambitious plans for growth and expansion within the Indian education sector.

Funding Supports Growth Strategy and Future Plans

Veranda Learning, in a press release, revealed that this NCD issuance represents the first tranche of a larger fundraising initiative planned for completion within the next three to six months. The company strategically aims to balance its funding profile by raising equity-like instruments in the future rounds.

Funding Allocation and Strategic Acquisitions

Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, underscored the critical role of this funding. "The NCD proceeds will be instrumental in propelling our growth strategy," he stated. "These funds will empower us to pursue strategic acquisitions, enhance operational efficiencies, and ultimately create long-term value for our stakeholders."

Investor Confidence in Veranda's Growth Trajectory

Kanchan Jain, Head of BPEA Credit Group, expressed BPEA's strong belief in Veranda's future success. "Our investment aligns perfectly with our fund's objective of supporting high-growth businesses like Veranda Learning," Jain remarked.

Utilizing Funds for Expansion and Acquisitions

Veranda Learning has outlined a clear plan for utilizing the raised capital. The funds will be directed towards financing strategic acquisitions, refinancing existing loans, and strengthening working capital. Veranda aims to complete acquisitions that strategically fill gaps within their educational ecosystem by the first half of the financial year 2024-25.

Education Sector Attracts Investor Interest

Anand Rathi Advisors, the lead bankers who facilitated the capital arrangement for Veranda, highlighted the growing investor interest in the education sector. Atul Thakkar, Director of Anand Rathi Investment Banking, commented, "The Anand Rathi Group recognizes the immense potential within the education sector. We are pleased to have facilitated over $450 million in transactions within FY24 alone, including this significant deal for Veranda Learning."

Veranda Learning on a Growth Trajectory

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is a publicly listed company offering a diverse range of educational programs. Their portfolio includes programs for competitive exam preparation, professional skill development, and upskilling initiatives. With this substantial debt funding secured, Veranda Learning is well-positioned to accelerate its growth, expand its presence, and further enrich its educational offerings in the Indian market.