Aas Vidyalaya
Initial Ask – Rs.1.5 Cr. for 3% equity at a valuation of Rs.50 Cr.
About the Company
The company focuses on solving the problem of schooling between classes 6-10. This company comes in to cater the secondary level education of the children using technology. Their app creates an environment similar to a real school, with classes, assignments, exams, even parent-teacher meetings.
However, realizing the fact that they can’t reach the remote areas through just technology, their main business constitutes of setting up education cafes and installing tabs for student to attend school anytime. While B2C did not work out for them because of less penetration, they went into B2B vertical. Having contacts with 5 big companies, they have set up education cafes on their plants, and get paid through that. This is how the ‘first online school’ gets like.
Past performance of the Company
This one of a kind company has earning of about 70 lacs in the financial year of 2020-21. Last 6 months of 2021 has been happening for them as they earned 1.5 Cr., and project the revenue to reach 5 Cr. till the end of the year.
Industry Overview
There are no online schools in India yet. Government is concerned for the primary education of the 50% poor population of our country, whereas all the edtech platforms targets 5% rich population. The middle 45%, which forms the real India, with income of around 30,000 monthly are left behind because of resources. This is the audience that the company targets. The industry looks quite lucrative, especially now on the back of Covid-19. Growing internet penetration and several Government schemes for the online education sector has helped it grow. Only challenge that it faces is the unavailability of the resources with the majority of population, and that’s what they aim to solve with their education cafes concept.
Previous Equity Split/Investments
Friends and family has an investment of Rs. 1.5 Cr. for an equity of 23%. Apart from that, NIDHI gave a seed fund of Rs. 50 lacs for an equity of 7%. The remaining amount of equity is split between the founder and a director.
Offers made, and the one accepted:
They got an offer by Namita Thapar, Peyush Bansal and Ashneer Grover, where they asked for 15% equity in return of 1.5 Cr.
This was countered, first by asking the sharks to come down to 7.5% equity and then to 10% equity for the same amount.
However, the deal was closed at the initial offer only.