Jaro Education files DRHP for raising ₹ 570 crore through IPO
Mumbai: Jaro Institute of Technology Management and Research (Jaro Education) has filed a Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for an initial public offering (IPO) of ₹ 570 crore.
The merchant bankers appointed to handle the IPO are Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services.
An early mover in the online higher education and upskilling space, Jaro Education was established in 2009 by Sanjay Salunkhe, the CMD and a first-generation entrepreneur with over 17 years of experience in the education sector. He is supported by Ranjita Raman, the CEO and whole-time director who has 15+ years’ experience in the education sector.
The institute delivers personalized, technology-driven degree programs and certification programs in collaboration with its Partner Institutions to students as well as C-Suite personnel.
As per the Technopack Report in its DRHP, the bootstrapped institute is one of India’s leading online higher education and upskilling platform companies, in terms of EBIDTA, EBIDTA Margin, PAT and PAT Margin, Return on Equity (“ROE”) and Return on Capital Employed (“ROCE”) as of March 31, 2023.
As on 31st March 2024, Jaro Education has over 22 offices-cum-learning centres across major cities for offline learning, apart from 15 immersive tech studio set-ups in the campuses of various IIMs, and cater to a total of 34 Partner Institutions such as IITs, IIMs and premier global institutions such as Swiss School of Management and Rotman School of Management, University of Toronto.
Its 239 course offerings and programs include Doctor of Business Administration, Master of Business Administration, Master of Commerce, Master of Arts, Post Graduate Diploma in Management, Master of Computer Applications, Bachelor of Commerce, Bachelor of Computer Applications and other degree programs in partnership with 13 universities in India, out of which 9 universities have been ranked in the top 100 by National Institutional Ranking Framework (NIRF).
Additionally, it provides online, hybrid, and in-person certification courses in areas such as management, fintech, data science, business analytics, design thinking and digital marketing, in partnership with 21 institutes in India, including 7 IIMs and 6 IITs, and 2 other institutions which have been ranked in the top 100 by NIRF.
Jaro’s business model has a high degree of predictability of revenue given its long-standing relationships with its partners. Its top 5 partners contributed 69.13% of its revenue from operations in FY 24 as compared to 86.15% in FY22. Its operational revenue grew 1.4 times to ₹ 122.1 crore in FY 2023, up from ₹ 84.5 crore in FY 2022. In FY 2024, the organization reported an operational revenue of ₹ 199 crore, a 63% increase compared to FY 2023.