Navneet Education Ltd said it has agreed to invest Rs 75 cr in a sports management and services company known as SFA Sporting Services Pvt Ltd to pick up a 14.3% stake.
Navneet Education is a developer and supplier of educational books and materials, and said the acquisition would help it offer “sports management” services to schools and educational Institutions.
“Sport is an integral part of every child’s growth,” the company said, explaining the rationale behind the investment.
“The positive physical and mental effect it can have on this segment will significantly improve the way to learn, adapt and collaborate in the future.
“A strategic partnership with SFA would help and improve Navneet Education Ltd’s offering of EdTech Products to schools and educational institutions.”
SFA, incorporated in 2015, provides a range of sports management and related services, including support services for holding sports events, sports training, league development, athlete management, sponsorship management and retailing of sports merchandise.
It also develops IT solutions related to sports and has solutions in the area of e-gaming as well as media and licensing activities related to sports.
“The strong platform built by the founders of SFA would make things easier for Schools and Educational Institutions who want to connect children with sports,” said the company.
It is likely that Navneet Education got a financially attractive deal in the process, given the cash-crunch faced by companies catering to outdoor and social activities, such as hotels, tour operators and sports management companies due to COVID-related restrictions.
SFA had a turnover of only Rs 39 lakhs in the year ended March 2018, which rose to 5.28 cr in FY19 and Rs 7.33 cr in FY20. It is likely that the turnover for FY21 saw an extreme decline. Navneet did not disclose SFA’s revenue for FY21.
The deal is being routed through Navneet’s wholly owned subsidiary eSense Learning Pvt Ltd.