How Redseer’s CDD De-Risked a Global Bank’s Investment in a Study Abroad EdTech Firm

Executive Summary 

The client partnered with Redseer Strategy Consultants for a commercial due diligence on a high-growth ‘study abroad consultancy and edtech’ firm. Through detailed market research for all the key destination geographies, assessment of the study abroad consultancy ecosystem in India, customer preferences assessment, and competitive benchmarking, Redseer presented a full picture of the target’s current position and potential evolution.

This comprehensive business due diligence approach advised the client on all potential pros and cons of the investment, resulting in value protection for the client through the decision to avoid investment in the asset.

About the Client 

The client was the private equity arm of a global bank, operating multiple platforms focused on co-investments, middle-market buyouts, growth equity, and impact investing. Recent fundraises have been targeting resilient, scalable businesses across regions through a diversified and operationally driven investment strategy.

The Strategic Imperative

The overseas education assistance market is growing rapidly in India, driven by easier financing options, better employment opportunities through overseas education, gaps in Indian education infrastructure, and an increasing number of IB-curriculum schools in India that have multiple university tie-ups. Technology is becoming an important source of leverage for companies looking to provide high-quality solutions to customers and establish market share. 

Outcomes & Impact 

• Market assessment: Redseer highlighted the high-growth geographies of Australia and New Zealand as weaknesses in the target’s capabilities, since they had a smaller portfolio of university tie-ups in these geographies 
• Tech stack: Redseer performed a detailed analysis on the relative capabilities of industry players, compared the target’s proprietary recommendation engine with peer offerings, their respective competitive moats, and the sustainability of these moats 
• Outcome: The investment firm chose not to go through with the investment, partly driven by limited target presence in high-growth markets, lack of moat, and defensibility of their tech platform that could be easily replicated.
  

What This Means for the Industry 

The study abroad market in India is growing rapidly, and the current time is ripe for investments in the space. Players that are ready with integrated support and unique offerings to serve students going to high–growth destinations will drive funding interests.  

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