Veranda Learning Secures Rs 425 Crore Funding Through NCD Issuance

Veranda Learning, a prominent player in the education sector, has secured Rs 425 crore through the issuance of Non-Convertible Debentures (NCDs). BPEA Investment Managers Private Limited (BPEA Credit) provided the funds.

Capital Infusion to Fuel Expansion and Strategic Acquisitions

The proceeds from the NCD issuance will be strategically allocated to support Veranda Learning’s expansion plans. The company intends to utilize the capital for financing acquisitions, refinancing existing loans, and bolstering working capital requirements.

NCD Represents Initial Phase of Larger Fundraising Initiative

Veranda Learning highlighted that the NCD issuance is the first step in a more extensive fundraising effort. The company anticipates completing the larger fundraising round within the next three to six months. This future fundraising may involve equity-like instruments to achieve a balanced risk profile.

Veranda Learning aims to leverage the NCD proceeds to pursue strategic acquisitions that will enhance its position within the education sector. These acquisitions are expected to be finalized by the first half of FY25 and will contribute to filling any gaps within the company’s current ecosystem.

Veranda Learning Leadership Expresses Optimism

Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, commented on the significance of the NCD issuance. He stated, “This decision aligns perfectly with our strategic vision to solidify our leadership role in the education space. The NCD proceeds will be instrumental in propelling our expansion plans, facilitating strategic acquisitions, optimizing operational efficiency, and ultimately generating long-term value for our stakeholders.”

Kanchan Jain, head of BPEA Credit Group, highlighted the alignment of this investment with their overall goals. Jain stated, “This investment aligns with our fund’s objective of actively participating in the growth trajectory of promising businesses. We are pleased to partner with industry leaders like Veranda Learning and provide them with tailored capital solutions to support their success.”

Anand Rathi Advisors Instrumental in Securing Funding

Veranda Learning acknowledged the crucial role played by Anand Rathi Advisors in securing the NCD funding. Atul Thakkar, Director of Anand Rathi Investment Banking, commented, “This transaction signifies a significant milestone for the education sector. It paves the way for consolidation within the segment, particularly focusing on cash-generating assets. This will ultimately attract greater investor confidence in high-quality platforms like Veranda Learning.”