Career Point aims at strengthening their E-learning Portfolio through acquisition of Schoolnet India
the sale hit a roadblock as one investor refused to sell stake to Career Point and restricted “IL&FS” from concluding the sale of the education business. The “IL&FS” Group sold 73.69% stake in its education business, held under “Schoolnet India” Ltd. (SIL), to “Falafal Technologies Pvt. Ltd.” (FTPL) during the same time period.
· Currently Career Point has “Plancess Education” under its umbrella for its Ed-tech solutions. The firm acquired the company in early 2019.
COVID Impact on Career Point: Though the immediate impact appeared to be negative on some of the business units mainly due to closure of physical study centers/campuses, the management took a quick decision. The company leveraged its technical solutions from the acquisition of “Plancess Education” in 2019 to deliver uninterrupted classes and lectures to its students in online mode during the pandemic. Career Point launched their e-learning project – eCareerPoint App– in midst of the crisis. Very quickly, Career Point achieved its top position in online coaching among other Kota coaching institutes.
Growth in Revenue for FY’19-FY’20: In FY’2019-FY’20, the company reported income from operations of ₹104.6 crores on consol basis and ₹52.1 crores at standalone level. Total revenue, including other income, is reported of ₹109.9 crores on consol basis and ₹ 72.8 crores at standalone level. Revenue from operations grew mainly on the account of increased income from Srajan Capital (NBFC subsidiary) and one-off income in Gyan Eduventure (wholly owned subsidiary).
Decrease in Student Enrolment in Tutorial Division: With the increased competition, decentralization of the tutorial student the company is facing a decli0ne in student enrolments in tutorial division for the past 5 years especially in the short term course category. The decline in tutorial division registered a CAGR of -10.3% for the duration FY’2015-FY’2020, whereas formal education enrollments grew with a CAGR of 19.0% for same duration
Analysts at Ken Research in their latest publication " Career Point- A Detailed Analysis of Company’s Potential Growth in Future " observed that the Career point needs to focus on key areas such as opening of more company owned branches, penetration into rural market and diversification of product portfolio in order to facilitate remote learning and to expand their student base across India, which will promote the growth of the company in a more structural & organized way by increasing the reach of their services to underpenetrated areas.