wordpress blog stats
Connect with us

Hi, what are you looking for?

Educomp Sells Its 50% Stake in IndiaCan To Pearson; Selling To Consolidate

indiacanEducation company, Educomp has sold 50% of its stake in IndiaCan, a vocational training business to Pearson, its JV partner in the venture,  according to BSE filing.

IndiaCan is a JV that was started between Educomp and Pearson in 2009 to tap on the vocational training market in India. Educomp in its press release has stated that this move is part of their “consolidation strategy”, a third in a series of exits from non-core businesses. The company says that this stake sale has been made to avoid the need to fund losses and other capital needs of a non-core business. It is not clear if IndiaCan has been making losses that Educomp has not been able to fund.

Educomp’s Consolidation: 

Educomp further plans to focus on digital content & IP offering and asset backed offerings like schools and colleges.  Note that Educomp Online is Educomp’s online education platform. It is not clear if there are other IP offerings or any in the pipeline. But it is clear that Educomp plans to keep its focus on digital. In January 2013, Authorgen, a subsidiary of Educomp Solutions Ltd, had raised Rs 22 crore from Kaizen, a private equity firm and a German media company, Bertelsmann. Authorgen through its website, WizIQ.com enables education service providers to create virtual classrooms and also convert document to flash. It appears that Educomp has also sold 50% stake in Eurokids International Ltd to a group of investors led by GPE India, last month. In 2011, Educomp merged Studyplaces.com after being acquired in 2010.  It is worth noting that Kleiner Perkins, Caulfield & Byers (KPCB), Sherpalo Ventures and InfoEdge, all investors in Studyplaces.com had reported that they lost money in the business.  Educomp plans to further continue this consolidation process.

Other Developments in the Education Sector

Note that IndiaCan is the second acquistion for Pearson this year. In February 2013, Pearson had acquired the remaining 20% stake in TutorVista thereby increasing its stake in the company to 100%. TutorVista provides online tutoring service to students. In the same month, e-learning site MeritNation raised Rs 30 crore funding from Info Edge (India). With this investment, InfoEdge became a majority stakeholder in Applect Learning Systems, the company that owns MeritNation. In March 2013, online test platform, Rank Junction had raised undisclosed sum of money from Indian Angel Network. In the same month, Skoolshop.com, an ecommerce site run by Occasion Kommerce Pvt. Ltd had raised series A funding from Blume Ventures & others.

Advertisement. Scroll to continue reading.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.

News

Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.

News

Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.

News

The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.

News

For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ