This move aims to fuel the company's growth trajectory by financing acquisitions, refinancing existing loans, and bolstering working capital requirements.
Veranda Learning, a listed enterprise offering end-to-end solutions in the education space, has received approval to raise up to Rs 425 crore by way of issuance of non-convertible debts (NCDs) to funds managed and/or arranged by BPEA Investment Managers Private Limited (BPEA Credit). BPEA Credit is a private equity firm that provides expansion finance to well-established mid-market businesses in Asia.
This move aims to fuel the company's growth trajectory by financing acquisitions, refinancing existing loans, and bolstering working capital requirements.
The NCD is part of a larger fund raise to be completed in the next three to six months. The company will balance its risk profile by raising equity-like instruments in the future. This will be used for further acquisitions and to fill the gaps in the Veranda ecosystem, according to a company statement.
Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, said, “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, said, “This investment is in line with our Fund’s objective of participating in growth-oriented businesses and partnering with industry leaders by providing bespoke capital solutions.”
Anand Rathi Advisors were the lead bankers who helped in arranging the funds for the company.
Atul Thakkar, Director, Anand Rathi Investment Banking, said, "This transaction marks a milestone for the education sector, fostering consolidation in cash-generating assets. It will attract investor support for good-quality platforms like Veranda. The proceeds will be strategically used for acquiring complementary assets and restructuring.”