Jaro Education files DRHP for Rs570 crore IPO
To raise Rs570 crore through an initial public offering (IPO). The IPO will be managed by Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services
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Hyderabad: Jaro Institute of Technology Management and Research, popularly known as Jaro Education, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs570 crore through an initial public offering (IPO). The IPO will be managed by Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services.
Founded in 2009 by Sanjay Salunkhe, a first-generation entrepreneur with over 17 years of experience in the education sector, Jaro Education has established itself as an early leader in the online higher education and upskilling space. Salunkhe, who serves as Chairman and Managing Director (CMD), is joined by CEO and whole-time director Ranjita Raman, who brings over 15 years of experience to the team.
Jaro Education delivers personalized, tech-enabled degree and certification programs in collaboration with leading institutions. Its offerings cater to both students and senior executives across various sectors. According to a Technopak report included in its DRHP, Jaro is one of India’s leading online higher education and upskilling platforms in terms of EBITDA, EBITDA margin, Profit After Tax (PAT), PAT margin, Return on Equity (ROE), and Return on Capital Employed (ROCE), as of March 31, 2023.
With 22 office-cum-learning centers spread across major cities as of March 2024, Jaro also operates 15 immersive tech studios on the campuses of premier institutions such as IIMs. The company collaborates with 34 partner institutions, including top-tier IITs and IIMs, as well as international schools like the Swiss School of Management and the Rotman School of Management at the University of Toronto.
Jaro offers 239 courses, including Doctor of Business Administration, Master of Business Administration, Master of Commerce, and various undergraduate programs in partnership with 13 universities. Nine of these universities have been ranked among the top 100 by the National Institutional Ranking Framework (NIRF). Additionally, Jaro provides certification courses in management, fintech, data science, and digital marketing, in partnership with 21 Indian institutes, including seven IIMs and six IITs.
The company’s long-standing relationships with partner institutions give it a high degree of revenue predictability. In FY24, its top five partners accounted for 69.13% of operational revenue, down from 86.15% in FY22. Jaro's operational revenue surged 63% to Rs199 crore in FY24, up from Rs122.1 crore in FY23 and Rs84.5 crore in FY22.
This IPO marks a significant step in Jaro Education’s growth trajectory, as it continues to expand its offerings and solidify its position in the competitive online education market.
