Educomp plans US foray

Leading online education company Educomp Solutions Ltd on Thursday said it would enter the capital markets to raise Rs 50 crore (Rs 500 million) through an initial public offer to fund its global expansion programme.

Over the next year, Educomp's major focus area would be expansion in global business with a focus on entering the lucrative US market, which is the world's largest education market, a release said.

The expansion plan would be funded by an IPO of Rs 50 crore, which would hit the market by December 5, it added.

The company said it had already sought approval from SEBI for its IPO. Educomp said it planned to build on its existing initiatives in the area of providing digital content for schools as well as online tutoring.

The online content spend in the US market is estimated to be over $10.2 billion, the tutoring spend is over $4 billion, while assessment spend is at $2 billion, it said.