Source: Entrackr
Mumbai, August 27, 2025: Edtech company Veranda Learning had large block deal activity on Tuesday with promoters selling part of their stake and large institutional investors coming in as buyers. The transaction is important in that it alters the ownership structure of the company, and it signals an increasing interest in educational technology by investors.
Institutional Buyers Get Involved
Authum Investment & Infrastructure (non-banking financial company) was the largest buyer in the deal, which was not surprising given its strong exposure in the capital markets. They bought 58 lakh shares of Veranda Learning worth ₹133.5 crore.
The global investment bank Goldman Sachs (Singapore) also bought 7.6 lakh shares worth ₹17.5 crore on the buy-side, which is seen as a strong vote of confidence in Veranda’s growth story.
Promoters Decrease holding
On the selling side, promoters K. S. Ganesh, K. S. Suresh, and K. S. Aghoram sold 22 lakh shares each, collectively accounting for a little under 17% of the promoters’ holdings. The shares were sold at an average share price of approximately ₹230, generating total proceeds of roughly ₹152 crore (about $18 million). In sum, it provides the promoters with some liquidity and introduces some reputable institutional shareholders to the company.
Better Financial Performance
Veranda Learning is to show signs of recovery and growth, as it grew revenue in the first quarter of FY26 by 17% year-on-year to ₹139 crore. More importantly, it became profitable, showing a net profit of ₹6 crore, up from a net loss of ₹26 crore in Q1 FY25.
Based on these results, the company has a market capitalization of about ₹2,155 crore (approximately $245 million). Analysts feel the improving numbers for Veranda, plus the entry of new investors, might improve the company’s market outlook.
Rising Competition from Physicswallah
As Veranda grows, competition will undoubtedly ramp up in the edtech arena. A competing firm named Physicswallah, based in Noida, India, has received SEBI approval on an IPO of ₹4,600 crore ($533 million). It will include a fresh issue and a possible offer for sale and would be one of the largest public issues in India’s edtech space.
Physicswallah has shown brisk growth. By FY25, it reported ₹3000 crore in revenue, with a revenue growth rate of nearly 55% year-on-year. It also reduced losses from the previous year by approximately 80%, suggesting a much improved financial situation, as well as operating situation. There is strong market readiness for Physicswallah, given the numbers that have been reported by Entrackr.
Outlook
The block deal at Veranda Learning is a testament to rising institutional interest in publicly listed edtech firms. Though the promoters have sold down, the entrance of players like Authum and Goldman Sachs may provide stability as well as boost investor confidence. There remains heightened competition in the space ahead with Physicswallah soon to come to market with a significant IPO. Veranda will need to continue increasing the growth momentum to stay ahead.
