Chennai-based education services provider EdServ Softsystems is looking to raise up to $35 million through a GDR (global depositary receipts) issue to fund its expansion plans. The firm plans to expand its e-learning presence to overseas markets, with focus on schools (K-12), CA courses, international test preps, IT skills training and personality development.
The entire fundraising process is expected to be complete within the next fortnight.
“The current expansion entails investment in pan-India growth to promote our flagship product, as well as the recently launched mobile learning services. The funds will be utilised for infrastructure expansion, investment into additional 160 schools, increasing access to mobile and television offerings, enhancement of IT systems and brand promotion & development,” said S. Giridharan, chairman and CEO of EdServ.
Edserv scrip rose 1.9 per cent to close at Rs 139.3 per share at BSE on Monday.
Last week, the Chennai firm has tied up with Research In Motion (RIM), to provide its online educational content through its HumThum apps, now available in the BlackBerry Apps Store. This is in addition to its earlier tie-up with Samsung. EdServ has also partnered with CAClubIndia, to capture a large chunk of the CA student base, and has tied up with IL&FS Education to aggressively push the K-12 market.
“Our flagship online learning portalwill continue to be the big growth driver this year. The availability of our entire education content on two of the world’s renowned smartphone brands (BlackBerry and Samsung), within the first month of launching our mobile learning services, is a testimony to the strong R&D we have undertaken in the last two years to create the HumThum mobile apps. Going forward, our educational content, delivered worldwide through smartphones, will be a key growth driver for EdServ. We are also focused to take our K-12 learning solutions worldwide, along with the International TestPrep and online certifications,” added Giridharan.