Guided high-skilled company Intellipaat taps ey conducts pre-IPO fundraising activities
To fund the next phase of growth, the company is exploring a private equity (IPO) private equity approximately ₹5 billion, about ₹Founder and CEO Diwakar Chittora said 80 billion IPOs were conducted in 12-16 months.
Although the company has not yet appointed bankers’ IPO, EY will advise Intellipat on its Inter-IPO fundraising campaign. “We have multiple business lines and each business has huge growth potential. This is our near-term goal for the next year and two years to achieve the revenue around us ₹Chitola said: “Rs 7 billion. We also have a very clear vision for the future, and plans to be made public within the next 12 to 16 months.”
He added that the company is exploring a private equity round to set a valuation benchmark for its IPO.
EY refuses to comment Mintquery.
Current business
Intellipaat was founded in 2011 and reported ₹1829 million tax and after-tax profit (PAT) ₹2023 – 1.85 billion in 24 years ₹705,000 ₹Rs 99 crore in 2021-22 show data from analytics company TRACXN.
The sharp growth is due to the surge in demand for existing product suites in the company’s existing data science and artificial intelligence space until the end of 2022, with the buzz of generating AI. “In the peak funding year of 2020-21, we also retained marketing spending when other overfunded peers burned cash. We increased marketing when they ran out of funds, especially as demand for AI Upkskilling peaked,” Chittora said.
The company is expected to end 2024-25 ₹Revenue is 2.2 billion. Chitola believes ₹Due to its multiple new business lines, revenues in the next two years are US$7 billion-8 billion.
“We earlier focused only on the technical certification course. Now, we have launched the Intellipaat Technical College for the undergraduate field, starting from the centre in Bangalore and expanding to Absoad-Abroad. These verticals will be fully operational in 2025 and financially in 2025.
The company targets ₹Revenues for the coming year were Rs 450-500 crore and incremental revenues were received from four new business scopes.
“We have more than ₹He said, “$13-14 billion sits in the account.
“Often entering adjacent opportunities by leveraging ones existing capabilities works out well as you don’t have to reinvent the entire wheel. It’s always relatively easier and more capital efficient to tap adjacent customer segments for growth. Therefore even though crowded, it’s not a bad idea for Intellipaat to tap these adjacencies,” said Abhishek Prasad, managing partner, venture capital fund Cornerstone Ventures.
“One aspect that stands out in Intellipaat is how they address this opportunity by building profitable bootstrapping businesses rather than high-growth venture capital, which may not have the stability required to build stability in this area. In this space, it’s a tough inquiry to reach 3-4 times the size in ~2 years,” he said.
Executive Department
Intellipaat operates in a highly skilled space with a focus on providing courses to graduates and working professionals. Chittora said that at present, about 90% of its revenue comes from the business-to-consumer (B2C) segment, while the remaining 10% comes from business-to-business (B2B) customers.
The B2B business functions similar to B2C, except that learners access courses through corporate partnerships. The company’s enterprise clients include Wipro, Genpact, Adobe and Cisco.
Currently, Intellipat’s plans cater to individuals from the age of 18 to retirement.
The high-skilled field has been a highlight in the otherwise frustrating edtech field over the past two years as it continues to see demand and fundraising.
Asked why Intellipat did not raise funds earlier, Chittora said the company’s previous attempts met concerns about higher competition in the industry. “At the time, the focus of investors was on revenue growth at all costs, but many companies that raised large amounts of money failed to achieve profitability. We are one of the rare edtechs that operate on this scale with sustainable profits, and that’s why investors are interested.”
The company competes with funded players in high-skilled fields of careers, such as Physicswallah, Oruditus and Upgrad, as well as other platforms such as SimpleLilearn, Scaleer in various other segments.
Chitola also believes it is important to introduce sustainable, like-minded investors, especially given how some recent Edtech deals work. “We’ve seen the founders lose alignment with investors who initially drove rapid revenue growth,” he said, ‘No need to worry about losses, just scale up’. Then, overnight, they changed their stance and said ‘just focus on profitability’. This puts the founders in a difficult situation,” he said.
“Improving the sports investment round should be feasible, but with the focus of fundraising, it should be on ensuring that business indicators and financial indicators are lined up for IPOs so that the market can provide insufficient opportunities in the proper doubling,” Prasad said.
