Jaro Education weighs IPO route to raise Rs 600 crore

Jaro Education IPO: Jaro Education, founded in 2009 by Sanjay Salunkhe, has been profit-making since its inception and is self-funded

Online course provider Jaro Education is expected to file its draft IPO papers next month to raise Rs 600 crore from the market.

The offer will comprise fresh shares of Rs 330 crore and an offer-for-sale of Rs 270 crore by its founder Sanjay Salunkhe, who owns nearly 95 percent in the company, while employees hold the rest.

Mumbai-based Jaro Education, which collaborates with institutions such as IIMs, IITs and top universities, intends to use the proceeds from the fresh issue of shares for marketing new programmes, adding a freemium model and for other operating expenses.

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The company has appointed Nuvama Wealth, Motilal Oswal Financial Services and Systematix to manage the public issue. Moneycontrol reached out to Jaro Education and the company confirmed the IPO plan and the appointment of bankers.

Jaro Education, founded in 2009 by Sanjay Salunkhe, has been making profits since its inception and is self-funded. Its revenue jumped 47 percent to Rs 122 crore in fiscal 2023. While operating profit rose 37 percent to Rs 26 crore over the last year.

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Jaro Education has formed strategic affiliations with top-tier business schools and universities such as The Wharton School (University of Pennsylvania), Rotman School of Management (University of Toronto), IIM Ahmedabad, IIM Kozhikode, IIM Tiruchirappalli, IIT Delhi, IIT Madras Pravartak, E&ICT – IIT Guwahati, IIT Palakkad and IMT Ghaziabad.

It has partnerships with 28 universities and is offering 15 undergraduate programmes and 56 certification courses, covering fields such as management, finance, and business analytics.