Edtech startups prepare for IPO exam as long funding winter draws to a close

After more than two years of a funding slowdown and mismatched valuation expectations in the private markets, India's edtech startups are gearing up for public listings in the next 1-2 years.

- Mansi Verma

Professional learning provider Imarticus, B2B edtech platform Classplus, online higher education company Jaro Education, and full-stack edtech unicorn Physics Wallah are among those that have set the ball rolling for their public market debuts. While some have already filed their offer documents, others are in discussions to finalize bankers for their initial public offerings (IPOs).

Physics Wallah, which appointed Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as bankers, is scheduled to file its draft red herring prospectus (DRHP) within the next month, three people aware of the development told Mint.

The company plans to raise $300-$400 million, one of the three persons cited earlier said, all of whom spoke on the condition of anonymity.

Imarticus Learning is in advanced talks with investment banking firms IIFL, and Ambit to appoint them as bankers for its upcoming IPO next year, two people with knowledge of the development said. The $125-million skilling company plans to raise ₹800-1,200 crore though the initial share sale, one of the people cited above added.

B2B edtech platform Classplus is in initial discussions with three to four bankers to figure out their path ahead as they consider a public listing over the next two years, two sources aware of the development told Mint. Physics Wallah, Imarticus Learning, Classplus, Ambit and IIFL did not immediately respond to a request for comment.

"The IPO market is open and attractive. When considering options-private equity or an IPO-an IPO is more attractive, at least for some founders I am speaking to," Deborah Quazzo, managing partner of GSV Ventures, one of the most active edtech-focused venture capital firms, told Mint on the sidelines of the ASU GSV edtech summit in Gurugram, last week.

Mint earlier reported that study-abroad platform Leverage Edu, and upskilling unicorn upGrad are also considering a public listing in the next two to three years.