Addictive Learning Technology
- Addictive Learning Technology (Lawsikho) is coming out with initial public offering (IPO) of 42,97,000 shares of Rs 10 each in a price band Rs 133-140 per equity share.
- The issue will open on January 19, 2024 and will close on January 23, 2024.
- The shares will be listed on NSE Emerge Platform.
- The face value of the share is Rs 10 and is priced 13.30 times of its face value on the lower side and 14.00 times on the higher side.
- Book running lead manager to the issue is Narnolia Financial Services.
- Compliance Officer for the issue is Komal Shah.
Profile of the company
Addictive Learning Technology is a professional upskilling and career services edtech platform which caters primarily to senior & mid-career professionals, and in some cases to young professionals as well. The company offers a comprehensive range of professional upskilling courses and training programs which includes Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing and Data Science through three distinct brands LawSikho, Skill Arbitrage and Dataisgood. These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic freelance work and remote jobs. It also caters to college students looking for advanced skills and recent graduates who are struggling to find jobs.
One of the company’s major focus areas is to offer upskilling courses which enable its learners to find career opportunities in the international market remotely. Some of the popular courses cover subjects like US Intellectual Property Law, US Tax Law, US Accounting, Bookkeeping and Corporate Compliances, International Contract Drafting, International Business Law, International Labour Laws, US Technology Law, US Corporate Law, US Real Estate Law etc.
Further, the company provide international bar exam courses such as: Canada Bar Exam, UK Solicitor Qualification Exam and California Bar Exam. These courses are meticulously designed to cater to learners who are looking to enhance their career growth by getting into new practice areas or enter new markets. It provides practical and industry-oriented courses designed to bridge the gap between theoretical education and practical application. The company’s courses are designed by its in-house team of curated professionals and experts with extensive experience in their respective fields. The company creates courses based on industry research and extensive consultation with different stakeholders. As a result, all its programs are customized to the industry’s requirements and needs, ensuring that it addresses major gaps in talent demand and supply.
Proceed is being used for:
- Meeting out the expenses for unidentified acquisition for company (In India or Abroad).
- Meeting the expenses for identified acquisition.
- Meeting out the expenses for investment in technology.
- Meeting out the expenses for development of new courses.
- Meeting out the branding & marketing expenses for the company.
- Meeting out the working capital requirements of the company.
- Meeting out the general corporate purposes.
- Meeting out the issue expenses.
Industry overview
The use of the latest educational technology, or edtech, in school settings has increased dramatically around the world in an effort to support teaching and learning and enhance student learning outcomes. Education Technology has transformed the way people access and consume education all over the world. Today, learning has been made more obtainable, flexible, and personalized, enabling people across the spectrum to acquire new skills and knowledge anytime, anywhere. In India, edtech has played an important role and contributed significantly to uplifting the standard of education over the last few years. The breakout of the Covid-19 pandemic has also initiated the growth of the e-tech industry in the country which was growing at a moderate pace and is expected to record an exponential growth of $30 billion by 2031. India has also become the second-largest market for e- learning after the U.S. With the increasing adoption of AI, ML, IoT, and blockchain technologies, Indian EdTech is expected to hold an important position in the global education industry. The Indian education market is expected to be a $225B opportunity by 2025, with online/digital education growing faster (27%) to reach $5.7B by 2025.
Indian EdTech start-ups found their way into the spotlight at the beginning of the pandemic in 2020. But with restrictions easing in 2022 and educational institutions reopening, hybrid learning became part of the 'new normal'. EdTech firms that adapted their business models to include hybrid learning comprising of online and classroom have not only survived the business woes of the pandemic but thrived in its aftermath. Today, there are approximately over 4,450 Indian EdTech start-ups in India that are assisting over 300 million school students across the globe. In line with this momentum, the Indian central government has rolled out several programs to boost the growth of the distance education market, besides focusing on techniques such as e-learning and m-learning. The government's focus on bringing the digital revolution to the education sector is evident with initiatives under the National Education Policy as well as the Union Budget 23- 24 that propose an improvement of digital infrastructure and regular training for teachers to encourage online and hybrid learning. While government support together with an impressive inflow of funding has helped Indian EdTech firms to thrive and expand offshore, digital payments have also played a key enabling role.
The rise of edTech, has made it possible to learn at anytime, anywhere. By embracing technologies like AI, ML, and IoT, edtech institutions and companies are adapting their pedagogies for online teaching and providing these cutting-edge courses through the digital medium for a fraction of the cost. The edtech sector’s potential to close the learning gap in the future appears to be quite promising given the trajectory of its expansion. Venture capital investments in India’s edtech sector have increased 32 times over the past 12 years, from 500 million in 2010 to 16.1 billion in 2022 and the sector is expected to reach $30 billion by 2031.
Pros and strengths
Diversified courses library: The company’s strength lies in its diverse collection of courses. It offers a wide range of courses on various topics, industries, and skill levels. This helps it to meet the different learning needs of its students all in one place. The students can pick courses that match their interests, learn new things, and stay updated with the skills they need for their jobs. With so many options, its students can make their learning experience unique and relevant to what they want to achieve.
Strategic collaboration with NSDC for Industry-Aligned Skill Development: Tie-ups with NSDC (National Skill Development Corporation) represent a significant business strength within its framework. These collaborations amplify its ability to provide skill-focused education and training that aligns with industry demands. The company’s association with NSDC showcases its commitment to delivering education that is not only theoretical but also practical and job oriented. This partnership empowers it to offer courses recognized by NSDC, ensuring that its offerings meet industry standards and are relevant to the evolving needs of the workforce. Furthermore, it grants it access to a broader audience, extending its reach to individuals seeking skill enhancement and career growth. This partnership bolsters its credibility and reinforces its position as a reliable education provider that emphasizes skill acquisition and professional development
Prioritizing skill development, with remote presence and a focus on innovation: The company prioritizes skill development and career outcome over purely theoretical pursuits. It provides a wide range of educational products and services, including courses, training programs, live workshops, practical assignments, outreach initiatives, profile building initiatives, performance coaching and networking opportunities. This ensures that learners receive a well-rounded education that not only imparts theoretical knowledge but also fosters practical skills crucial for professional success. Training sessions, practical exercises, mentorship, and real-world case studies come together to create a dynamic and immersive learning environment. The company’s remote presence is instrumental in reaching a diverse and vast audience, bridging geographical gaps and making quality education accessible to learners across the country. This extensive reach enhances its impact, contributing to the empowerment of individuals from diverse backgrounds and regions. It also generates employment in Tier-2 and Tier-3 cities of India.
Risks and concerns
The company is recognized by its brand name: The company is recognized by the name of its brand “LawSikho” rather than Addictive Learning Technology Limited. A strong brand name is a powerful asset, making it easier to attract customers, clients, and partners, but it will create a different perception of its identity in their minds. The brand name gives an impact that the company provides legal and law related courses and practical skills, however, it also provides other practical skills advancement courses. Such perception can have negative impact on the image and identity of the company. The company may face limitations when trying to diversify into new markets or industries and its students may be resistant to accept the brand in a context they don't associate it with, which can hinder expansion.
The company is on online educational technology platform: The company is a professional upskilling edtech platform which caters to senior & mid-career professionals and offers a comprehensive range of professional upskilling courses and training programs. It does not have any physical presence for providing its services, instead it is wholly online services aggregators. Due to which, customers may be skeptical of online businesses due to the prevalence of scams and fraud. Building trust and credibility is challenging in online businesses. There exist many people who may not trust online businesses due to concerns about privacy, security, or fraudulent activities. This lack of trust can deter them from engaging with online services. In addition to this, not all potential customers have equal access to the internet or the necessary technology which can limit market reach. In some areas, particularly in rural or remote regions, access to high speed internet may be limited or unavailable. This geographic limitation means that people in these areas may have little or no access to online services, thus excluding a potentially significant customer base.
Present promoters are first generation entrepreneurs: The company’s present promoters are first generation entrepreneurs. Their experience in managing and being instrumental in the growth of the company. The concern is that their limited experience and knowledge could potentially hinder the company's growth in the future. The statement is being cautious and transparent about this uncertainty, as it cannot assure that the promoters' inexperience won't affect the company's success.
Outlook
Addictive Learning Technology is an educational technology platform that primarily caters to senior and mid-career professionals, and sometimes young professionals, providing upskilling and career services. The company offers courses and training programs to help individuals advance their skills. The company covers Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing, and Data Science under three different brands: LawSikho, Skill Arbitrage, and Dataisgood. The company's courses are accredited by the National Skill Development Corporation (NSDC), a PPP under the Ministry of Skill Development and Entrepreneurship of the Government of India. Upon successful completion of their chosen course, the learners are awarded a certificate that is co-branded by NSDC and Skill India. On the concern side, the company’s major revenue is sourced from its Legal Courses Vertical Operated under its Brand “LawSikho” and its inability or failure to manage and attract more clients could adversely affect the business. Moreover, the company is an online educational technology platform. It does not have any physical presence and maintain its business online on remote basis only.
The company is coming out with an IPO of 42,97,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 133-140 per equity share. The aggregate size of the offer is around Rs 57.15 crore to Rs 60.16 crore based on lower and upper price band respectively. On performance front, total income for the period ended March 31, 2023, stood at Rs 3,354.47 lakh whereas in Financial Year 2021-22 it stood at Rs 1,859.34 lakh representing an increase of 80.41%. The significant increase in topline at is because of two key drivers contributing to this success: a substantial rise in the number of course enrollments and the strategic introduction of a new vertical. The restated profit after tax for the Period ended March 31, 2023, stood at Rs 247.13 lakh whereas in Financial Year 2021-22 the company reported a net loss of Rs 49.0 lakh. The company intends to expand internationally by offering its courses to international customers/ students, fostering increased customer engagement and enhancing placement opportunities. By tailoring its courses to resonate with diverse global audiences, it anticipates heightened interest and participation from international students. This strategy involves thorough market research to identify promising international markets and crafting compelling marketing campaigns to effectively target them. To support its international students, the company will provide multilingual assistance and culturally sensitive support. This approach not only widens its global footprint but also enriches its educational community with cross-cultural perspectives, propelling it towards a more interconnected and impactful future.
Download APP
