We have written earlier that Edtech and Martech player CL Educate is a stock in a positive upcycle. FY22 has already seen a chain of positive developments. CL’s newsletter for its Test Prep business for Nov’21 shows the rapid pace of developments at the company.
Some key snippets:
- CL is making good progress on its goal of sizable (~7x) expansionof the franchise network of its Test Prep business Career Launcher. The company has a target of 1000-partner network in 8-12 quarters, from a current level of around 150. In November, the company signed a few strong partners in Patna and Trichy.
- Career Launcher signed a landmark academic partnership with North India’s leading JEE/NEET Test Prep firm Vidyamandir Classes. This alliance will allow Career Launcher to make deep inroads into the 8-12 grade segment, the largest Test Prep segment in India, where hitherto CL has had minimal presence.
- Career Launcher is launching Vidyamandir’s acclaimed Neev (classes 6-8), Prodigy (classes 9-10) and Legacy (classes 11-12) programs in its own centres to cater to students in grades 8-12. The first goal is to cross 1000+ enrolments each in Neev, Prodigy and Legac
- The company launched a new advanced SaaS based dashboard for its franchisees aspi.bizconsiderably easing their workflow processes. CL counts itself among the most technologically advanced Test Prep companies in the country, with strong inhouse skill sets in Artificial Intelligence and Machine Learning and related technologies, which it is using to steadily differentiate its business from competitors.
The entire newsletter can be seen here – http://www.cleducate.com/monthly-newsletter/
CL Educate has two areas of business.
- Test preparation (Brand: Career Launcher) – They are market leaders for law, MBA preparation. They also have a good market share in GATE, Bank entrances etc. They are niche players in JEE and NEET. They also have owned and franchise centres in India and overseas but with Covid the business is moving online, with better margins.
- B2B marketing services (Brand: Kestone) – Services include experiential marketing and digital marketing for corporates and educational institutions. They are especially strong with global clients like Dell, Amazon and HP, besides many others. Post Covid they have developed a globally acclaimed virtual platform that has been used successfully by large corporations and is now gaining traction.
PS: Wisdom-IR is investor relations advisor to CL Educate. In case you have any queries for the management, you can address them to us.