Education Markets and Deals Roundup — 19th Edition

The global education sector demonstrated mixed performance , with notable developments in both public and private segments. While companies like Duolingo, Stride, and TAL Education reported strong results and strategic expansions, others like New Oriental Education faced challenges.

The Indian education market, despite broader market uncertainties, showed resilience through strategic partnerships, technological innovations, and significant funding activities.

Overall key trends included AI integration, demonstrated by Microsoft-Pearson collaboration, expansion of digital learning infrastructure, and multiple strategic acquisitions focusing on skill development and educational accessibility.

The sector has witnessed substantial investment flows and technological advancement in last few months and is expected to continue this trend in the upcoming year, particularly in some of the emerging and niche sub education markets.

I. Public Markets

Market Multiples Snapshot — Global and Indian Education (Source: Koyfin)

1. Global Education

Global education companies delivered strong quarterly results, demonstrating improved operational performance and expanding user engagement, thus giving a boost to the stock prices and also expecting a positive industry momentum for the upcoming year

Global Listed Education Player Comps

Rapid Round-up

1. Duolingo has expanded its Video Call feature to Android devices and five additional languages, while experiencing a significant 216% surge in Mandarin learners amid RedNote’s rising popularity following potential TikTok restrictions. This has led its shares up 11% as the company strategically positions itself on Red platform through its China team, with Spanish remaining its most popular language at 48.8 million learners
2. New Oriental Education & Technology Group Inc. reported disappointing Q2 fiscal 2025 results wherein total net revenues increasing by 19.4% year-over-year to USD 1,038.6 million, but adjusted earnings per share of USD 0.22 which was falling short of the consensus estimate of USD 0.32. This significantly affected the stock price of the Company
3. Stride, Inc. announced strong Q2 fiscal 2025 results with revenue reaching USD 587.2 million, supported by a 19.4% increase in enrollments to 230.6K, including 94.8K Career Learning enrollments, leading to adjusted EBITDA of USD 160.4 million compared to USD 118.3 million last year which significantly boosted the stock price of the Company as well
4. TAL Education Group reported Q3 fiscal 2025 results with net revenues of USD 606.4 million, a 62.4% increase year-over-year, turning a USD 23.9 million loss into USD 23.1 million net income, demonstrating successful business transformation with improved operational efficiency
5. Microsoft and Pearson announced a strategic collaboration to address global AI skilling challenges through AI-powered learning products, featuring Microsoft Azure integration, new AI credentials, and expanded Pearson VUE certification services through 2029, aiming to help organizations adapt to AI transformation while extending Microsoft 365 Copilot deployment across Pearson’s global workforce

2. Indian Education

The Indian stock market witnessed a considerable decline in January 2025, attributed to multiple factors including projected corporate earnings deceleration, pre-budget market sentiment, substantial foreign institutional investor (FII) outflows, and broader economic uncertainties. The education sector stocks also experienced significant downward pressure amid this market correction and is expected to revive in the upcoming months

Indian Listed Education Player Comps

Rapid Round-Up

1. NIIT Learning Systems reported Q3 fiscal 2025 results showing 7.04% revenue growth to INR 418.88 crore and 8.78% profit increase to INR 61.73 crore year-over-year. They have maintained strong market position with INR 6364.04 crore market capitalization thereby receiving Strong Buy recommendations from analysts.
2. ZNIUS, Zee Learn’s comprehensive K-12 education solution, integrates curriculum aligned with NEP 2020 and NCF-SE 2023, featuring AR-enabled content, gamified learning, and unified LMS-ERP systems, targeting 3,000 schools and 1 million learners by 2030, with its inaugural implementation at SVD International School demonstrating commitment to transforming Indian education standards

II. Private Markets

Equity Financing and M&A Snapshot — Indian Education (Source: Tracxn)

Indian Education Market Funding and M&A Round-Up

1. Leap raised USD 65 million in Series E funding led by Apis Partners , with participation from Owl Ventures, Jungle Ventures, and Peak XV Partners, bringing total equity capital to USD 210 million, while expanding its AI-powered study abroad services platform that includes LeapScholar, LeapFinance, GeeBee, and Yocket, serving students targeting US, Canada, UK, and Australian institutions.
2. Suniel Shetty-backed Klassroom Edutech secured undisclosed growth capital from ah! Ventures, LetsVenture, Hem Securities, Meteor Ventures, and Growth Sense Fund, leveraging its hybrid model combining AI-driven education OTT platform with 200 offline centers, serving 50,000 subscribers and 500,000 students across 600 cities, while partnering with Rajasthan government to provide skill development courses
3. Red.Health acquired majority stake in TACT Academy for Clinical Training, now rebranded as RED TACT, to establish a global center for allied healthcare excellence, planning training hubs in major cities and digital learning integration, while leveraging its network of 6,000 ambulances and partnerships with 100 hospitals to strengthen emergency medical services
4. Global STEM education provider BrightCHAMPS acquired Indian K12 marketplace Edjust in a cash-stock deal, marking its fourth acquisition since 2020, aiming to strengthen global expansion across 30 operational regions through personalized AR, VR, and XR experiences, while developing new distribution channels for academic content in Math, Science, and English
5. IMS Learning acquired Manya Education, a comprehensive global higher education services provider founded in 2002, operating 20 offline centers across India and partnering with The Princeton Review to offer counseling, test preparation, admissions assistance, and other services, having guided over 400,000 students in their academic journeys

Overall Private Market Rapid Round-Up

1. HEX, a future of work education company, has acquired Sydney-based EntryLevel to enhance its skills training portfolio, combining HEX’s innovation and entrepreneurship expertise with EntryLevel’s approach to reskilling, aiming to deliver transformative learning experiences and address the global employability gap
2. The Global Learning Council, through Switzerland’s Villars Institute, is partnering with Schoolnet India to democratize education in emerging markets, leveraging Schoolnet’s network of 100,000 schools to reach 50,000 students and teachers initially, with plans to impact 10 million students within five years
3. upGrad has signed a Memorandum of Understanding with the Maharashtra government, witnessed by Chief Minister Devendra Fadnavis and Ronnie Screwvala in Davos, to develop an AI talent pool that will foster employment opportunities throughout the state
4. EL Education, a K-12 focused nonprofit, has partnered with educational platform Kiddom to integrate high-quality instructional materials with dynamic learning technology, enabling curriculum delivery both online and in print to transform schools into equitable opportunity centers
5. The National Association of Proprietors of Private Schools in Lagos State secured a USD 1 billion agreement with US-based Digital Learning Network Inc. to transform digital education in Nigeria, with DLN fully funding the project to enhance educational quality and promote social inclusion through technology nationwide
6. Jaypee Brothers Medical Publishers launched DigiNerve, an EdTech platform featuring DigiNEET and DigiOne online courses, designed to revolutionize NEET PG preparation and undergraduate medical studies while making quality educational resources accessible across urban and rural India
7. Made-in-India Android laptop brand Primebook delivered over 20,000 laptops to the Government of India, establishing digital libraries across 20 states and 5 Union Territories to bridge the digital divide and enhance educational access for students in underserved communities

LoEstro Advisors is an investment banking firm specializing in sell-side fundraise and M&A advisory, along with a strong consulting arm.

Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1billion + worth of combined deals closed across education, healthcare, consumer, and technology sectors.