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Mumbai — Learnfluence Education Limited, the holding company of popular coaching brand Lakshya, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). This move signals the company’s aggressive expansion plans in India’s competitive EdTech and coaching services landscape, leveraging its proven multi-modal (campus and online) learning model.
IPO Structure and Fundraising Goals
The proposed IPO is a mix of fresh equity issuance and an Offer For Sale (OFS) by the promoter. The fresh issue is targeted to raise up to ₹2,460 million (₹246 Crore).
The overall offer also includes an Offer For Sale of up to 40,00,000 equity shares by the promoter selling shareholder, OrwelLionel.
The net proceeds from the fresh issue will be strategically deployed to fuel the company’s future growth:
- Expansion: Capital expenditure for setting up new physical campuses.
- Marketing: Investment in sales and marketing initiatives to increase brand visibility.
- Financial Strength: Repayment or prepayment of certain outstanding loans.
- Infrastructure: Expenditure towards lease payments for existing long-term campuses.
- General Corporate Purposes.
The company, in consultation with the Book Running Lead Manager (Saffron Capital Advisors Private Limited), may also consider a Pre-IPO Placement of equity shares prior to filing the Red Herring Prospectus (RHP).
Explosive Financial Growth & Market Presence
Learnfluence Education, which operates the Lakshya brand from 15 campuses across 8 cities including key hubs like Calicut, Ernakulam, and Bengaluru, has demonstrated stellar financial performance leading up to its IPO filing.
According to a CRISIL Report, the company’s financial growth metrics stand out among its peers:
- Operating Income: The operating income recorded a CAGR of 127.44% between Fiscal 2022 and Fiscal 2024, ranking as the third-highest in the industry.
- Profitability: The company achieved the highest CAGR in Operating Profit before depreciation, interest, and tax (OPBDIT) at an impressive 232.76% during the same period.
- Net Profit: Profit After Tax (PAT) also recorded the highest CAGR of 184.13%, with a strong PAT margin of 14.72% in Fiscal 2024.
Despite its current strong growth, the company currently holds a modest but significant 3.26% market share in the highly fragmented coaching service industry in India, as per the CRISIL Report, indicating substantial room for future expansion.
Hybrid Learning Model: The Lakshya Edge
The core of Learnfluence’s business is its multi-modal learning approach. The physical coaching institutes, operating under the brand Lakshya, are complemented by the company’s proprietary LMS app, Lakshya IIC, which is available on major app stores. This hybrid model allows the company to cater to a diverse base of students, graduates, and working professionals, ensuring reach beyond its physical footprint.
The filing of the DRHP marks a crucial step for Learnfluence as it seeks to capitalise on the robust investor interest in the Indian education technology space. The utilisation of IPO proceeds is clearly geared towards strengthening both its physical (campus) presence and its digital (LMS) capabilities, which is the defining trend for the future of education.
The offering is managed by Saffron Capital Advisors Private Limited, the sole Book Running Lead Manager to the issue. The final price band and offer details will be disclosed in the RHP following SEBI’s review and observation.
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