New Delhi, Dec 1
ONLINE education company Educomp Solutions Ltd today said it would enter the capital markets to raise Rs 50 crore through an initial public offering to fund its global expansion programme.
The company is planning to expand its operations to the US over the next one-year. The plan would be funded through the IPO, which will hit the market by December 5, a company statement said.
Educomp has already sought approval from SEBI for its IPO to offload 25 per cent of its equity through the book building process. It has a turnover of Rs 32 crore and plans to build on its existing initiatives in the area of providing digital content for schools as well as online tutoring.
The online content spend in the US market is estimated to be over $10.2 billion, the tutoring spend is over $4 billion, while assessment spend is at $2 billion, the company said.
Mr Shantanu Prakash, Chief Executive Officer, Educomp said, "It is a challenge for us to enter a highly evolved e-learning market like the US. Interestingly, though schools in US have a progressive outlook on the use of technology in the classroom, there is an increasing failure rate of school students. Educomp possesses capabilities to service the education needs of the US market."
The Delhi-based Educomp employs 900 professionals and has presence in 27 locations across the country and has a fully-owned subsidiary in the US.
The company has set a target of reaching 10 million learners through its product by 2008.