Veranda Learning Secures Rs 425 Crore Debt Funding from BPEA Credit for Expansion Plans

• ByStartupStory     |    March 28, 2024

Chennai-based education firm Veranda Learning has successfully secured Rs 425 crore in debt funding through non-convertible debentures (NCDs) from BPEA Investment Managers Private Limited (BPEA Credit). The funding marks a significant step for Veranda as it aims to bolster its expansion plans in the education sector.

In a statement released by Veranda Learning, the company revealed that the NCD issuance is part of a larger fundraise to be completed within the next three to six months. The company intends to balance its risk profile by raising equity-like instruments in the future.

Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, emphasized the importance of the funding in supporting the company’s growth strategy, stating, “The proceeds from the NCD issuance will be instrumental in supporting our expansion plans, enabling us to pursue strategic acquisitions, enhance operational efficiencies, and drive long-term value creation for our stakeholders.”

Kanchan Jain, Head of BPEA Credit Group, expressed BPEA’s confidence in Veranda’s growth prospects, stating, “The investment in Veranda is in line with our fund’s objective of participating in growth-oriented businesses.”

Veranda Learning has outlined its plans to utilize the funding for financing acquisitions, refinancing existing loans, and bolstering working capital requirements. The company aims to complete acquisitions aimed at filling gaps in its ecosystem by the first half of the financial year 2024-25.

Commenting on the transaction, Anand Rathi Advisors, the lead bankers involved in arranging the capital for Veranda, highlighted the attractiveness of the education sector for investors. Atul Thakkar, Director of Anand Rathi Investment Banking, remarked, “Anand Rathi Group sees immense potential in this sector and [is] pleased to have facilitated transactions exceeding $450 million in FY24 alone, including this significant deal.”

Veranda Learning Solutions, founded in 2018 by the Kalpathi AGS Group, is a publicly listed education company offering a diverse range of training programs for competitive exam preparation, as well as professional skilling and upskilling programs. With this substantial debt funding secured, Veranda Learning is poised to further expand its presence and offerings in the education market.

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