Amplus founder Sanjeev Aggarwal-led investors make hyper local edtech bet

NEW DELHI : myclassroom promoted by Sanjeev Aggarwal, founder and managing director of Petroliam Nasional Bhd (Petronas) owned Amplus and a clutch of marquee investors is in talks with private equity firms for sale of stake in the hyper local edtech firm to raise growth capital.

The edtech startup ties up with local coaching institutes to boost their teaching infrastructure in an offline environment. The other investors in their personal capacity in my classroom are I-Squared Capital managing partner Gautam Bhandari; IIFL Wealth CEO Karan Bhagat; former senior MD of Blackstone Mathew Cyriac; and former MD of Warburg Pincus Niten Malhan. A total of $12.5 million have been raised from these early investors.

At a time when the edtech space is going through a churn, my classroom is in the business of aggregating and standardizing supplementary education and has 40 centers across the country. Some of the major names in the online delivery model are Byju’s, Vedantu and toppr; while those in the offline space are FIITJEE and Blackstone Group-backed Aakash Educational Services Ltd which was recently acquired by Byju’s.

Mint has been reporting about the stress in the edtech sector as offline classes resume with the pandemic receding and competition rises.

Aggarwal founded Amplus Energy Solutions Pvt. Ltd, one of India’s largest rooftop solar power producers in 2010 which was sold to Petronas for Rs2,700 crore and marked Malaysia’s state-run oil and gas company’ global foray into clean energy space. New York-based I Squared Capital invested $150 million in Amplus in April 2015 and helped it to grow to become India’s largest rooftop solar power producer before selling its stake.

“Along with my co-investors, we are proud to support the excellent founding management team at myclassroom. Education remains a highly underserved market and as investors, we would like the company to remain focused on adding value to every student that it enrolls,” said Aggarwal while declining to name the private equity investors, the discussions are on with to raise the next round of growth capital.

With the students going back to offline traction coaching, the model has gained with my classroom close to clocking 100 crore revenue this fiscal FY23. myclassroom on its part is helping local coaching institutes to focus on small towns through better technology, smart class rooms and marketing. The plan is to add 75 new centers for FY 23-24 and reach 300 centers in 60 cities by FY26.

“Many of our partners were looking for capital and marketing support for expanding their business in the post-Covid world and we are glad that we are able to help them in their growth,” said myclassroom chief operating officer Mohit Goel.

Aggarwal’s bets comes at a time when the $16 billion offline coaching space and $12 billion test preparation market is highly fragmented. While explaining myclassroom’ proposition he said that the ed-tech start up co-brands the local institutes with myclassoom, digitizes and standardizes the pedagogy.

“Aggregation of coaching institutes leading to quick scale-up and reduced Customer Acquisition Costs (CAC) due to local level credibility and stickiness of students,” Aggarwal added.

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