Exclusive | TeamLease Edtech to raise around Rs125 crore from PEs, aims to float IPO

TeamLease Edtech, a part of the staffing and human resources firm TeamLease Services, aims to raise about Rs125 crores from private equity players, as part of a larger move to float an initial public offering in the next three to four years.

“We are planning to raise capital for our growth. We are talking to investors. Of course, the parent company can fund us but we do not want that because we are charting an independent IPO listing... So there will be a financial investor,” TeamLease Edtech founder and chief executive Shantanu Rooj told Moneycontrol in an exclusive interaction.

Rooj said he and his team were talking to private equity players and were hoping to close the deal in the next four weeks.

“What we are targeting now is about Rs 125 crore… possibly between Rs 100 crore to Rs 125 crore,” he said. “We believe we have some amazing products in the company and have a potential to grow and expand enough”.

TeamLease Edtech is a learning solutions company that provides services to universities and corporates. It helps universities launch, run and manage online programs, improve the employability of students through skilling and help companies upskill and reskill their workforce.

Also read: Layoffs, restructuring, slowdown: India’s edtech firms struggle after Covid

IPO plan

TeamLease Edtech is an independent legal entity within the TeamLease Group, said Rooj.

“For us the model to look at is, let’s say the HDFC model, each group firm looking at a growth path, listing, etc. TeamLease Edtech is gearing for that,” he said.

The listing is likely in the next three to four years, said Rooj, adding that TeamLease Edtech would grow between five to six times over the next four years. It is also looking to become a Rs 1,000 crore revenue company ahead of the listing.

Neeti Sharma, president and co-founder of TeamLease Edtech said, the company would add more staff to fuel growth. The firm has around 280 employees, which will grow to 400 over the next few months.

The firm is hopeful that the staff strength would grow significantly for the next couple of years before the listing, Rooj said. “While some firms are blowing hot and cold, TeamLease Edtech continue to stay warm and grow profitably.”

Also read: Startups to prioritise performance marketing over brand building

Growth path

Sharma said since the firm was profitable and generating cash, it didn’t need funds for day-to-day operations but to accelerate growth.

“The funding that we are planning to raise will accelerate the growth path. We can organically grow and continue to be profitable. If we have to hasten our growth, invest in technology, products, people, and brands. Those areas need investments and help us accelerate our growth. We believe this is an exciting time for edtech,” Sharma said.

Despite the turmoil in the startup ecosystem, it remained a cash-positive player and raising funds despite the crunch won’t be tough, the company said.

“Even in the current turmoil, it is difficult to find another edtech firm of our size, which is constantly profitable. Raising funds, we believe will not be difficult,” Rooj said.

The startup world is facing a funding crunch. Some have shut down, several have been laying off people and many more are emphasising conserving money.

Health-tech company MFine, edtech firms such as Vedantu, Unacademy and Lido Learning and Cars24, several startups have let go of staff in recent weeks.