I just spoke to Hitesh Oberoi, COO of Info Edge, who informed me that Applect is founded by Ritesh Hemrajani and Pavan Chauhan, both with experience in the education segment. Applect will be launching a separate site focused on e-learning (not Shiksha). Applect has been doing mostly offline work, and offshore development, and has the capacity and staffing to develop content. “They understand content and education business, we understand online. The initial job will be to take the tests and content online,” said Oberoi.
Original story: Info Edge India has informed the BSE that they intend to pick up 40 percent stake in educational content company Applect Learnings Systems, for a total of Rs. 6.5 crores (around $1.5 Million). So far, they’ve already invested Rs. 1 crore (around $235,000). Applects website doesn’t mention its founders, only “Applect’s management team comprises MBAs from the IIMs…cumulative corporate experience of more than 35 years in the education industry.” Some key points about this investment:
— Why Applect: Applect provides content development services for the K-12 segment (literally – KG to Class 12), which is essentially pre-college. Two of their products – Career Assessment Program (CAP) and Test Prep – UG (for entrance exams for BMS, BBS, BBA, LAW, IT, HM, Mass Communication) – will fit in well with Info Edge’s educational portal Shiksha.com.
— Growing Significance Of The Educational Segment: Take a look at last few significant announcements from Info Edge – the investment in Applect, the previous investment of $3 million in Study Places Inc alongwith KPCB and Sherpalo, and the launch of the launch of Shiksha.com indicates that education is emerging as a key segment for the company.
— Delhi Location: Appelect Solutions operates out of Delhi, while Study Places Inc operates out of Gurgaon, both in close proximity to investor Info Edge.
Disclosure: I own an inconsequential number of shares of Info Edge India Ltd