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CL Educate raises stake in edutech firm 361minds

By Debjyoti Roy

  • 24 Jul 2017
CL Educate raises stake in edutech firm 361minds
Credit: Thinkstock

Gaja Capital-backed CL Educate Ltd, the parent of test-preparation platform Career Launcher, has further invested in Threesixtyone Degree Minds Consulting Pvt. Ltd, which runs online higher education brand 361minds.

CL Educate put in an additional Rs 8 crore ($1.2 million) in the Chennai-based firm, according to a stock market disclosure.

The company already holds 4.43% stake in the online education services provider.

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“The investment was made to enhance reach, exploit synergies and add to delivering channels,” CL Educate said in a statement.

The public-listed entity had made an undisclosed investment in 361minds during financial year 2010-11.

Founded in 2006 by C P Gopinathan and P Rammohan, 361minds provides learning and education solutions for corporations, colleges and universities, academic service providers and government bodies in India and internationally.

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The firm offers graduation/diploma programmes besides providing leadership programmes to corporate managers. It claims to be serving pharmaceutical, education, academic services, information technology and telecommunication industries.

CL Educate, which made a disappointing debut on the stock markets early this year, recently acquired the 49% stake it didn’t already own in educational services provider Accendere Knowledge Management Services Pvt. Ltd.

The company also signed a pact to acquire ETEN test prep business, a unit of coaching services provider IndiaCan Education Pvt. Ltd. However, the financial details of both the two transactions were not available.

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IndiaCan was earlier an equal joint venture between British publishing and education services company Pearson Plc and Educomp Solutions Ltd. In 2013, Pearson bought Educomp’s stake.

CL Educate had bought a 51% stake in Chennai-based Accendere in 2015.

Unlike many other recent public offerings, CL Educate made a lacklustre start on the public market and its IPO struggled to attract investors.

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The Gaja Capital-backed firm was the first education services company to float an IPO in five years. MT Educare Ltd, with a Rs 35-crore public offering in March 2012, was the last education company to float an IPO.

CL Educate floated a Rs 238.95-crore IPO that comprised a fresh issue and an offer for sale by Gaja Capital and the company’s promoters and institutional shareholders. The issue saw a dilution of 33.61% stake on a post-offer basis.

The firm posted net sales of Rs 147.84 crore in financial year 2016-17.

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