S Chand Records Over 2X Returns On Selling iNeuron Stake To PhysicsWallah

SUMMARY

PhysicsWallah has acquired an approximately 19.5% stake in an online learning platform iNeuron

iNeuron’s existing investors–S Chand, S Chand’s directors and Mukesh Sharma Family Trust have offloaded 6.5%, 3% and 10% stakes respectively in the edtech startup and consequently sold their stakes to PhysicsWallah

As part of the deal, S Chand has received about INR 13.8 Cr for divesting shares in iNeuron

Edtech unicorn PhysicsWallah has acquired an approximately 19.5% stake in an online learning platform iNeuron.

As per iNeuron, its existing investors–S Chand, S Chand’s directors and Mukesh Sharma Family Trust have offloaded 6.5%, 3% and 10% respectively in the edtech startup and consequently sold their stakes to PhysicsWallah.

According to regulatory filings, following the deal, S Chand has received about INR 13.8 Cr for divesting shares in iNeuron. Further, the company inked definitive agreements with iNeuron and its founders, and with PhysicsWallah.

Founded in 2019 by Sudhanshu Kumar, iNeuron is an online learning platform that offers educational courses including machine learning, AI and data science, among others. It also offers placement assistance, and internship and employment opportunities to students.

“iNeuron and S Chand have agreed to work together to empower students and job seekers with education and experiential skills. We are happy to now hand over the reins to PhysicsWallah and are confident that both iNeuron and PhysicsWallah will have form a great synergy and the potential to spearhead India’s digital learning journey,” said, Saurabh Mittal, CFO of S Chand and Company Ltd.

S Chand shared that in July, it exited edtech startup Testbook after receiving about 8x return.

The company claims to operate digital platforms including S Chand Academy (a YouTube channel), TestCoach App, Learnflix App and Mylestone Curriculum Solutions.

“This deal enables us to monetize our edtech investments at an attractive valuation and provides opportunities to explore future investments that align with our growth strategies. We are focused on developing our own solutions and channels of interactive learning for K-12, test prep and college and will be launching newer initiatives and content,” added Mittal.

S Chand has infused money in various companies including Smartivity, flipClass and IGNITOR Learning, among others and has also acquired Chhaya Prakashani in 2016, as per Crunchbase data.

Meanwhile, as per S Chand, Mukesh Sharma, who also offloaded shares in iNeuron, has founded companies like Qualitest, a digital service provider company.

Prior to the current deal, PhysicsWallah has already acquired three startups–PrepOnline, Altis Vortex and FreeCo for an undisclosed amount this year.

It is important to note that Alakh Pandey-led PhysicsWallah is the only profitable edtech startup this year. Considering its revenue numbers, in the financial year 2021-22, it reported 14X year-on-year (YoY) growth to INR 97.8 Cr against INR 6.9 Cr profit gained in FY21.

Meanwhile, its operating revenue stood at INR 232.5 Cr in FY22 as compared to INR 24.6 Cr revenue recorded in the previous year (FY21).