In January 2018, Rao IIT Academy had raised structured debt worth Rs 55 crore ($8.6 million) from Avendus Finance, the credit solutions arm of Avendus Capital to use the credit to scale up its coaching services business and refinance existing loans.
CNBC TV18 invited Mr. Vinay Kumar (MD & CEO, Rao IIT Academy) & Sandeep Thapliyal, (MD & CEO, Avendus Finance) on Centrestage (Talk show hosted by Gautam Srinivasan on CNBC TV18) to discuss growth story of Rao Academy and its partnership with Avendus.
Discussion started with the growth of private coaching industry in India. Mr. Sandeep Thapiyal mentioned about this industry that India is a very large coaching market and it is roughly 50% of global coaching market which market value is around $105 bn. He also gave his point on yearly growth of coaching industry’s market value from 2016.
Mr. Vinay Kumar shared the growth story of Rao IIT Academy in last five years. Rao Academy has grown up at a cumulative rate of 45-50% in last five years in total. There are ten thousand plus students all together presently enrolled with the system. Total revenue is around 100 crores. Presently it has expanded in Mumbai, Delhi, Kota, Pune, Nagpur, Kota, Patna, Lucknow , Silvassa, Vapi . Expansion of the academy is around 100% to 200% year on year.
Mr. Vinay Kumar also mentioned that academy started by Dr. B.V. Rao (Chairman, Rao Academy) in Kota and because of his daughter, Yamini Rao started it in Mumbai in the year 2008 . In the year 2009, he joined the academy by shifting himself from corporate sector to coaching industry since Yamini Rao was to be his wife. He along with his wife started to run the coaching in a professional way. In initial phase, he faced a lot of challenges & problems. He observed that students were not working hard to get for IIT in Mumbai. He figured out the reason behind it that students get tired after school and many other problems. So he came up with an idea of integrated school coaching. He also mentioned that in the year 2009, when academy started in Mumbai, only 150-200 students from Mumbai were going to IITs and but last year itself, this number increases upto 1100+ , out of which 390+ students were from Rao IIT Academy.
During interview , Mr. Vinay Kumar also mentioned Rao Academy’s contribution on One India One Exam – government initiative and mission like Making India. Mr Thapiyal also gave his views on these government initiative.
As there are 40+ learning centers of academy in India so Lastly Mr. Vinay also shared the future expansion plan of academy. In the coming year, academy will be covering Gujrat and also some parts of south India like Hyderabad, Vijaywada, Chennai, Thiruvananthapuram . In coming 4-5 years, the expected target number of centers across country is 100 plus and total enrolled students is 3 lakhs plus.
Mr. Vinay also shared the success story of Rao Academy YouTube Channel. There are more than One Lakh twenty seven thousands subscribers now in the channel which is the highest number among all the youtube channel of Offline coaching institutes. Mr. Vinay stated the reason behind it that in last five years, more than 2000+ videos of competitive and boards lectures for class 6th to 12th Std. have been uploaded.
At the end of the interview, Mr. Thapiyal also mentioned what makes Rao IIT Academy different from other coaching institutes.
Full Interview: https://youtu.be/PqI2DO630yo