Gaja Capital-backed CL Educate Ltd, the parent of test-preparation platform Career Launcher, has further invested in Threesixtyone Degree Minds Consulting Pvt. Ltd, which runs online higher education brand 361minds.
CL Educate put in an additional Rs 8 crore ($1.2 million) in the Chennai-based firm, according to a stock market disclosure.
The company already holds 4.43% stake in the online education services provider.
“The investment was made to enhance reach, exploit synergies and add to delivering channels,” CL Educate said in a statement.
The public-listed entity had made an undisclosed investment in 361minds during financial year 2010-11.
Founded in 2006 by C P Gopinathan and P Rammohan, 361minds provides learning and education solutions for corporations, colleges and universities, academic service providers and government bodies in India and internationally.
The firm offers graduation/diploma programmes besides providing leadership programmes to corporate managers. It claims to be serving pharmaceutical, education, academic services, information technology and telecommunication industries.
CL Educate, which made a disappointing debut on the stock markets early this year, recently acquired the 49% stake it didn’t already own in educational services provider Accendere Knowledge Management Services Pvt. Ltd.
The company also signed a pact to acquire ETEN test prep business, a unit of coaching services provider IndiaCan Education Pvt. Ltd. However, the financial details of both the two transactions were not available.
IndiaCan was earlier an equal joint venture between British publishing and education services company Pearson Plc and Educomp Solutions Ltd. In 2013, Pearson bought Educomp’s stake.
CL Educate had bought a 51% stake in Chennai-based Accendere in 2015.
Unlike many other recent public offerings, CL Educate made a lacklustre start on the public market and its IPO struggled to attract investors.
The Gaja Capital-backed firm was the first education services company to float an IPO in five years. MT Educare Ltd, with a Rs 35-crore public offering in March 2012, was the last education company to float an IPO.
CL Educate floated a Rs 238.95-crore IPO that comprised a fresh issue and an offer for sale by Gaja Capital and the company’s promoters and institutional shareholders. The issue saw a dilution of 33.61% stake on a post-offer basis.
The firm posted net sales of Rs 147.84 crore in financial year 2016-17.
