Veranda Learning to acquire 50% stake in Tapasya Education Institutions, stock up by 2%

Education enterprise Veranda Learning Solutions said on Friday that it is acquiring a 50 per cent stake in Tapasya Educational Institutions Private Limited (TEIPL) for Rs 120 crore through its subsidiary Veranda XL Learning Solutions.

Launched in 2009, Tapasya Educational Institutions offers services to 19 Inter/ PU Colleges and 10 degree colleges across 13 locations in Telangana and Karnataka and has over 13,000 students enrolled.

Tapasya provides comprehensive educational and ancillary services to colleges that offer a diverse range of courses. These courses include intermediate, pre-University, and graduation programs like B.Com and BBA. Additionally, Tapasya also caters to professional courses such as CA and CMA, as well as integrated programs. In the fiscal year 2024, TEIPL is projected to generate a revenue of Rs 65 crore, with an EBITDA of Rs 26 crore.

Acquiring Tapasya will strengthen Veranda's ecosystem in Commerce Higher Education. Veranda Learning can expand its course offerings and leverage regional expertise through Tapasya's network. Tapasya, on the other hand, can benefit from Veranda Learning's experience in curriculum development, technology integration, and student support services. This symbiotic relationship will reshape education in Telangana and Karnataka.

Suresh Kalpathi, Executive Director and Chairman of Veranda Learning Solutions, said: “The 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.”

Muppala Sreedhar, Founder and Chairman of Tapasya Institutions, said: “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.”

Last year, Veranda Learning Solutions revealed that it has acquired seven businesses through its wholly-owned subsidiary, Veranda Administrative Learning Solutions Pvt Ltd at a total valuation of over Rs 400 crore. The companies that were acquired included Educare Infrastructure, Six Phrase, Smart Bridge, Talent Academy, Talent Publications, Phire Learning, and BAssure.

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is an education technology company that provides training programs for competitive exam preparation. These programs cover a wide range of exams, including the State Public Service Commission, Banking, Insurance, Railways, IAS, and CA. Veranda Learning Solutions also offers upskilling programs through its subsidiaries, such as Veranda RACE, Veranda IAS, and Edureka. Additionally, the company has expanded into Chartered Accountancy coaching through its partnership with JK Shah Classes.

Shares of Veranda Learning Solutions were trading at Rs 320.65, up by 1.58 per cent, at 3 PM on Friday.

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