Infonative Solutions coming with IPO to raise Rs 24.71 crore

Infonative Solutions

• Infonative solutions is coming out with an initial public offering (IPO) of 31,28,000 equity shares in a price band Rs 75-79 per equity share.
• The issue will open on March 28, 2025 and will close on April 3, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 1 and is priced 75 times of its face value on the lower side and 79 times on the higher side.
• Book running lead manager to the issue is Share India Capital Services.
• Compliance Officer for the issue is Shakshi.

Profile of the company

Infonative Solutions is principally engaged in business of developing and designing of e-learning Content and services and courseware & other product including providing cloud-based learning management system (LMS) etc. In the year 2014, the company started modestly, operating from a small, 10-seater office at the bustling IT hub of Delhi at Nehru Place, New Delhi. Within a year, the dedication and hard work paid off. Infonative Solutions outgrew its initial space and moved into a larger, 50-seater office, reflecting the company’s rapid growth and increasing client base. The expansion was not just physical; it marked the beginning of Infonative Solutions’ journey towards becoming a significant player in the e-Learning industry. In 2018, Infonative Solutions made a strategic move that set the stage for future success by Investing in Mindscroll, a leading LMS software. This investment was a game-changer, enabling Infonative to offer a comprehensive suite of eLearning solutions that integrated cutting-edge technology with innovative educational methodologies.

Currently, the company is engaged in crafting Bespoke e-Learning Solutions, Learning Consulting and Courseware & Off the Shelf content including Learning Management Systems. It provides cutting-edge e-learning Delivery services designed to enhance business impact for clients. Its team of learning professionals assists the world’s top Companies in revolutionizing their training functions. These services not only reduce costs and add measurable value but also amplify business impact, enabling customers to reallocate resources and focus on their core business operations.

Proceed is being used for:

• Meeting the expenses for development of new products, courses and new features in LMS and purchase of laptop
• Meeting the working capital requirements
• Meeting out the expenses for General corporate purposes and unidentified acquisitions

Industry overview 

E-learning, which stands for electronic learning, refers to acquiring knowledge, skills, or training through electronic or digital mediums, typically delivered via the Internet or computer networks. It consists of several forms of educational content, including online courses, virtual classrooms, digital resources, and interactive multimedia materials. LMS market is poised for significant growth, driven by technological advancements, the need for flexible learning solutions, and the increasing importance of continuous education and training in both academic and corporate settings. The current demand for LMS in the market is substantial and continues to grow rapidly. 

The India e-learning market was valued at $10.24 billion in 2023 and is projected to reach $28.46 billion by 2029, growing at a CAGR of 18.57% during the period. The adoption of e-learning in India has witnessed significant growth over the past few years. Owing to the proliferation of affordable smartphones and widespread internet access, e-learning has become more accessible to learners across urban and rural areas, thus driving the market.

The rise of eLearning has made it possible to learn at anytime, anywhere. By embracing technologies like AI, ML, and IoT, eLearning institutions and companies are adapting their pedagogies for online teaching and providing these cutting-edge courses through the digital medium for a fraction of the cost. The e-Learning sector’s potential to close the learning gap in the future appears to be quite promising given the trajectory of its expansion.

Pros and strengths

Scalable business model: Its business model (eLearning business) is inherently scalable due to its digital nature, which allows for easy expansion without the significant manpower and Infrastructure costs and logistical challenges associated with traditional Instructor led learning methods. Once an eLearning platform or course is developed, it can be delivered to a virtually unlimited number of users across different geographies simultaneously. The content can be updated, replicated, and distributed at minimal additional cost, making it possible to reach a global audience efficiently. Furthermore, advancements in cloud computing, mobile technology, and internet connectivity have further enhanced the scalability of eLearning by enabling access to educational resources anytime and anywhere. This scalability allows eLearning businesses to rapidly grow their user base and revenue while maintaining high levels of service and content quality.

Commitment to meeting market needs: The company is aiming to create a comprehensive range of professional upskilling courses and training programs which includes Softskill, Selling Skill, Anti Bribery, Business Consulting, Cyber Security, Artificial Intelligence, Content Writing and Data Science through a distinct brand Mindscroll. These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic remote jobs and freelance work. Some of the popular courses cover subjects like Time Management, Excel Dashboarding, Project Management, Cyber Crime, Cyber Security, Email writing skills, Insurance, Selling Skills, POSH, Anti Money Laundering, GDPR etc.

Expanding the off the shelf library: Recognizing that the demand for off-the-shelf content is growing, Infonative Solutions sets ambitious goals for the future. The company aims to continuously expand its content library to meet the evolving needs of the eLearning market. Plans include creating new courses, adding new topics, updating existing materials to keep them current, and incorporating advanced learning technologies such as virtual reality and gamification.

Risks and concerns

Rely on information technology systems: It heavily relies on the performance, reliability, and security of its tech enabled platform and technology infrastructure, as well as its service providers that facilitate and process transactions. Its information technology systems serve a vital role in managing both the customer-facing front-end interface and digital mobile applications, as well as the back-end operations that support its internal enterprise-wide digital systems, client integration, document management etc. Any disruption in its information technology systems could have adverse effects on its operations and reputation.

Working capital requirement: The company’s working capital requirement was Rs 184.77 lakh and Rs 150.53 lakh for the financial years ended March 31, 2023 and March 31, 2022 respectively. In case there are insufficient cash flows to meet its working capital requirement or it is unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or it is unable to procure funds on favourable terms, at a future date, it may result into its inability to finance its working capital needs on a timely basis which may have an adverse effect on its operations, profitability and growth prospects.

Delays and/or defaults in customer payments: It may be exposed to payment delays and/or defaults by its customers. Its financial position and financial performance are dependent on the creditworthiness of its customers. As per its business model, it supplies its services and products directly to its customers. Delays in payments from customers may require the company to make a working capital investment. If a customer defaults in making its payments on an order on which the company has devoted significant resources, or if an order in which the company has invested significant resources is delayed, cancelled or does not proceed to completion, it could have a material adverse effect on the company’s results of operations and financial condition.

Outlook

Infonative Solutions is engaged in crafting Bespoke e-Learning Solutions, Learning Consulting and Courseware & Off the Shelf content including Learning Management Systems. It provides cutting-edge e-learning Delivery services designed to enhance business impact for its clients. On the concern side, it operates in a competitive atmosphere. Some of its competitors may have greater resources than those available to the company. It competes with organized and as well as unorganized players in the industry, who may have better financial position, market share, product ranges, human and other resources. There are no entry barriers in its industry which puts it to the threat of competition from new entrants.

The company is coming out with a maiden IPO of 31,28,000 equity shares of Rs 1 each. The issue has been offered in a price band of Rs 75-79 per equity share. The aggregate size of the offer is around Rs 23.46 crore to Rs 24.71 crore based on lower and upper price band respectively. On performance front, the company’s total revenue has decreased by 13.72% from Rs 2095.16 lakh in the financial year ended March 31, 2023 to Rs 1807.80 lakh in the financial year ended March 31, 2024, primarily due to decrease in the revenue from operations. Moreover, the company recorded an increase of 35.70% in profit after tax from Rs 106.87 lakh in financial year ended March 31, 2023 to Rs 145.02 lakh in financial year ended March 31, 2024.

Given the ongoing growth of technology and the evolving needs of its clients, it is committed to expanding into new sectors with innovative and forward-thinking ideas. Historically, it has concentrated on serving enterprises that are heavily focused on technology and information, leveraging its strong capabilities in e-learning. To build on this foundation, it now plans to diversify its business activities by entering new domains, including product development, training, and capacity building. By expanding its offerings to include these areas, it aims to cater to a broader range of client needs and deliver its services more comprehensively. Its goal is to become a full-service provider, capable of supporting its clients throughout the entire process chain, from initial concept to final execution.