Veranda Learning Acquires Stake in BB Virtuals, Navkar Digital

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Veranda Learning, a well-known education technology company, has made a strategic move by acquiring a 40.41% stake in BB Publications Private Limited (BB Virtuals) and a 65% stake in Navkar Digital Institute. This acquisition aligns with Veranda Learning’s goal of expanding its footprint in India’s commerce education sector. The company also plans to acquire an additional 10.59% stake in BB Virtuals by June 2025.

With these acquisitions, Veranda Learning is set to strengthen its presence in both online and offline commerce education by leveraging the expertise of BB Virtuals and Navkar Digital. BB Virtuals, founded by renowned CA educator Bhanwar Borana, has successfully trained over 200,000 students and produced more than 500 all-India rank holders. Meanwhile, Navkar Digital, established by Hitesh Kumar Shah, has built a strong reputation as an offline coaching institute in Gujarat. By combining these strengths, Veranda Learning anticipates that its commerce division will achieve a pro forma EBITDA of over Rs 120 crore for FY25.

As a publicly listed entity under the Kalpathi AGS Group, Veranda Learning continues to broaden its portfolio by integrating cutting-edge educational solutions across multiple domains. Through this strategic partnership with BB Virtuals and Navkar Digital, the company reaffirms its commitment to delivering high-quality learning experiences, further enhancing commerce education across India.

1. Veranda Learning: A Growing Force in Education Technology

1.1 About Veranda Learning

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions has rapidly evolved into a leading education technology platform in India. The company specializes in competitive exam preparation, professional upskilling programs, and academic support for students. By offering a combination of online and offline learning models, Veranda Learning effectively caters to aspirants preparing for state public service commissions, banking, insurance, railways, IAS, CA, and various other professional courses. Through this hybrid approach, the company ensures accessibility and flexibility, thereby meeting the diverse needs of students across the country.

1.2 Revenue and Business Model

Veranda Learning operates on a hybrid revenue model, which includes:

• Subscription-Based Learning: Paid online courses and recorded lectures for exam preparation.
• Offline Coaching: Physical coaching centers under various brand names.
• Corporate Training & Upskilling: Offering professional courses for working professionals.
• Test Preparation & Study Materials: Premium study resources for students.

1.3 Funding and Growth

Since going public in 2022, Veranda Learning has raised significant capital to expand its reach. In December 2023, it received approvals to raise Rs 250 crore via a preferential issue, allowing it to invest in acquisitions and technological advancements. Moreover, the company’s aggressive expansion strategy includes integrating digital and offline learning solutions to offer holistic education.

2. BB Virtuals and Navkar Digital: Pioneers in Commerce Education

2.1 BB Virtuals: A Leader in Online CA Education

BB Virtuals, founded by CA educator Bhanwar Borana, is an established online education platform that provides top-tier coaching for CA and commerce aspirants. The company has trained over 200,000 students, producing more than 500 all-India rank-holders. BB Virtuals’ success lies in its digital-first approach, offering recorded lectures, live sessions, and exam-focused guidance.

2.2 Navkar Digital: A Strong Offline Presence in Gujarat

Navkar Digital, established by Hitesh Kumar Shah, is a well-known coaching institute that caters to CA, CS, and CMA aspirants. Over the years, it has built a strong reputation in Gujarat, primarily due to its offline model, which fosters a structured and immersive learning environment. Furthermore, the institute’s consistent track record of producing successful candidates in competitive exams has solidified its position as a preferred choice for students seeking professional qualifications.

3. The Acquisition: A Strategic Move by Veranda Learning

3.1 Strengthening Commerce Education in India

By acquiring stakes in BB Virtuals and Navkar Digital, Veranda Learning further strengthens its position in India’s commerce education sector. This strategic move not only enhances its market presence but also enables the company to integrate BB Virtuals’ strong online presence with Navkar Digital’s well-established offline expertise. As a result, Veranda Learning can offer a more comprehensive and seamless learning ecosystem for commerce students, ensuring greater accessibility and a richer educational experience.

3.2 Financial Impact and Growth Projections

Veranda Learning expects these acquisitions to contribute significantly to its financial performance. The company’s commerce division is projected to achieve a pro forma EBITDA exceeding Rs 120 crore for FY25, further boosting its revenue and profitability.

3.3 Future Plans and Expansion

Looking ahead, the company has announced plans to acquire an additional 10.59% stake in BB Virtuals by June 2025, thereby increasing its ownership and control over the platform. This move further strengthens Veranda Learning’s long-term vision of consolidating the commerce education market under its umbrella and expanding its influence in the industry.

4. Learning for Startups and Entrepreneurs

4.1 Importance of Hybrid Learning Models

Startups in the education space can take inspiration from Veranda Learning’s hybrid approach, which effectively blends online and offline learning to cater to a diverse student base.

4.2 Leveraging Strategic Acquisitions for Growth

Mergers and acquisitions serve as powerful tools for startups looking to expand rapidly. By acquiring established players in the industry, businesses can leverage their existing customer base and expertise to accelerate growth.

4.3 The Role of Technology in Education

As evidenced by BB Virtuals’ success, digital-first learning solutions represent the future of education. Startups should therefore focus on integrating technology, offering personalized learning experiences, and making education more accessible to students nationwide.

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