Indian Multinational banking and financial service company, ICICI Bank that has recently announced to have bought a 9.09% stake from Myclassboard Educational Solutions Pvt Ltd (MESPL), an educational technology startup. The deal has been signed with the consideration of INR 4.5 Crore. The banking company announced the news on Tuesday, 29/12/2020 that it has agreed to make an investment in the edtech platform.
ICICI Bank will be a shareholder of 9.09% stake in MyClassboard Educational Solutions Pvt Ltd by taking over 100 equity shares and 1,04,890 Preference shares which is Cumulative Compulsorily Convertible on a fully diluted basis. This is based on the regulatory filings filed with the Ministry of Corporate Affairs (MCA). When a shareholding is supposed to be below 10%, regulatory approval is not needed. This is also based on the provisions and guidelines by the government authorities. Likewise, in the case of acquisition, ICICI Bank confirms that they would not take any regulatory approval, since the shareholding acquired will be below 10%. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India, and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.
MyClassboard is a platform that helps school authorities and administration to manage all school-related clerical tasks such as managing staff and student details, streamlining tasks, and helping out in the communication between school authorities and parents. MESPL platform is a non-stop software for all schools and college-related management tasks. This edtech platform was founded by Ajay Sakhamuri in 2009. It had a turnover of INR 12 Crore in the financial year 2020 and it had a turnover of ₹ 95.8 Crore in 2019. MyClassroom Educational Solutions Pvt Ltd has incurred losses as the schools and colleges are shut during the COVID- 19 pandemic. But as the nation is recovering from the pandemic, the situation will come back to normal with the reopening of schools and other educational institutions. The MESPL platform will come back again, the analysts have reported. 2 percent stake has been sold by India’s largest insurer Life Insurance Corporation (LIC) in private sector lender ICICI Bank through open market transactions.