Information on the Target

Practically, an edtech platform operated by 3rdFlix Visual Effects Pvt Ltd, has made a significant acquisition by purchasing Fedena, an enterprise resource planning (ERP) software for schools. Although the financial details of the acquisition remain undisclosed, this move positions Practically as the first edtech company globally to offer a comprehensive end-to-end product suite tailored specifically for educational institutions.

The newly integrated product will provide schools with a range of services, including experiential learning content, innovative teaching tools, and user-friendly administrative features. Fedena itself offers a robust platform for various school management functions such as parent-teacher collaboration, fee management, online payments, grading systems, attendance tracking, online examinations, and other essential administrative tasks.

Industry Overview in India

The Indian edtech industry has seen remarkable growth in recent years, driven by increased digital adoption in educational settings. With a burgeoning population that prioritizes quality education, the demand for innovative educational solutions has burgeoned. As of 2022, the Indian edtech market was estimated to be valued at several billion dollars and is projected to continue growing as technology becomes a staple in classrooms.

Government initiatives aimed at promoting digital literacy and technological integration in schools have further accelerated this growth. Initiatives such as Digital India aim to bolster the country's educational infrastructure, creating an environment where technology is seamlessly integrated into the learning process.

Furthermore, the COVID-19 pandemic dramatically shifted educational dynamics, necessitating digital learning solutions. As a result, many traditional educational institutions have begun adopting hybrid models, which blend conventional teaching with digital resources, thereby enhancing the relevance of edtech platforms like Practically and Fedena.

In light of these developments, both Practically and Fedena are well-positioned to capitalize on this swath of opportunity. With Fedena's established presence in 18 countries and Practically's operations expanding into the Middle East and plans to enter Southeast Asia, the combined offering is set to reach a larger global market.

The Rationale Behind the Deal

The acquisition of Fedena aligns with Practically's strategic vision of creating a holistic edtech ecosystem that delivers a multitude of services to schools worldwide. This acquisition not only enhances Practically’s operational capabilities but also significantly increases its market reach both domestically and internationally.

Moreover, by leveraging Fedena’s expertise in school management software and its existing network of institutions, Practically aims to offer higher-quality educational content, including immersive simulations and game-based learning experiences. This synergy promises to deliver improved outcomes for educational institutions and their students.

Information About the Investor

YourNest Capital Advisors, the investing entity behind Practically, is dedicated to backing startups that exhibit strong growth potential, particularly within the technology and education sectors. Their involvement indicates a commitment to fostering innovative solutions that augment educational outcomes.

The firm has already shown faith in Practically through previous investments, recognizing its pioneering efforts in utilizing advanced technology such as augmented reality (AR) and 3D video content to enrich the learning experience. Their strategic investments not only enhance Practically's capabilities but also signify confidence in the overall growth trajectory of the edtech sector.

View of Dealert

The acquisition of Fedena by Practically appears to be a sound decision that is likely to result in a productive synergy between the two entities. By combining Practically's innovative educational solutions with Fedena's school management capabilities, the new entity can deliver enhanced services to a wider range of educational institutions, positioning itself as a leader in the edtech landscape.

Furthermore, with both companies focused on leveraging technology to improve educational outcomes, the strategic alignment will facilitate ongoing innovation and expansion, particularly in markets that are rapidly adopting digital education solutions. This merger holds the potential to streamline administrative tasks for schools, thus allowing educators to devote more time to teaching and improving student outcomes.

Moreover, Practically's ambitious plans for growth, including upcoming fundraising efforts for its Series B round, coupled with the current momentum in the edtech sector, suggests that this acquisition could bolster its competitive edge and deliver favorable returns in the long run. Overall, the deal represents a strategic investment in strengthening the edtech ecosystem while expanding operational reach.

View Original Article