Veranda Learning Solutions Ltd Management Discussions

Operational Landscape

GLOBAL ECONOMY REVIEW

The global economic outlook for FY 2025-26 reflects a landscape of cautious optimism amidst persistent challenges. According to the International Monetary FundRss April 2025 World Economic Outlook, global real GDP growth is projected to moderate from 3.2% in 2024 to 2.8% in 2025, before stabilising around 3.1% over the medium term. This trajectory underscores a slower but steady post-pandemic recovery, influenced by shifting trade patterns, tightening financial conditions, and evolving geopolitical alignments.

Advanced economies are expected to continue their subdued recovery, with growth inching up from 1.6% in 2024 to 1.7% in 2025, and marginally higher at 1.8% by 2026. This muted expansion is shaped by high interest rates, sluggish productivity growth, and demographic constraints in several developed markets.

On the other hand, emerging markets and developing economies (EMDEs) are forecast to grow at 4.2% in 2025, a slight moderation from 4.3% in 2024, but still significantly ahead of advanced economies. Strong domestic demand, improved labour markets, and investment in digital infrastructure continue to be growth drivers for EMDEs. However, inflationary pressures and currency volatility pose ongoing risks.

Global inflation, while easing, remains elevated in some regions. The IMF projects headline global inflation to decline to 5.9% in 2025, down from 6.8% in 2023, with advanced economies seeing a faster disinflation compared to developing counterparts. Core inflation, especially in services, remains sticky due to wage growth and supply-side disruptions.

The report also highlights the continued impact of geoeconomic fragmentation, energy security concerns, and rising trade restrictions. These structural shifts are leading economies to re-evaluate supply chains, invest in domestic capabilities, and transition toward digital and green economies—factors likely to reshape global growth contours over the next decade.

Despite these concerns, the global economy remains resilient, supported by robust household consumption in some markets, sustained government spending, and a gradual recovery in global trade volumes. The baseline scenario remains one of a soft landing, though downside risks such as conflict escalation, financial instability, and climate-related shocks could challenge this trajectory.

Source: IMF World Economic Outlook, April 2025 ( )

Indian Economy

India continues to reinforce its position as the fastest-growing major economy globally. According to the IMFRss April 2025 projections, IndiaRss real GDP is expected to grow by 6.5% in FY 2025-26, maintaining the countryRss momentum as a key global growth engine. This builds on an estimated 6.8% expansion in FY 2024-25, driven by strong domestic demand, sustained capital expenditure, and policy-led reforms.

IndiaRss nominal GDP is expected to cross USD 4.2 trillion in FY 2025-26, on track to reach USD 5 trillion by 2027, and nearly USD 7 trillion by 2030, according to IMF estimates. Notably, India overtook Germany in 2025 to become the worldRss third-largest economy in nominal GDP terms, marking a significant milestone in its ascent on the global economic stage. The growth trajectory is being fuelled by structural tailwinds, including expanding infrastructure, accelerating digitisation, and improved ease of doing business.

The inflation outlook has improved, with Consumer Price Index (CPI) inflation projected at 4.2% in 2025-26, well within the Reserve Bank of IndiaRss target range. Tighter monetary policy, normalising food prices, and easing global commodity costs have contributed to this trend. The fiscal deficit is expected to be trimmed to 5.1% of GDP, reflecting the governmentRss focus on fiscal consolidation without compromising growth investments.

IndiaRss demographic profile continues to be a strategic advantage. With a median age of 28.4 years and over 815 Mn people in the 9-40 age group, the countryRss young population supports strong domestic consumption, workforce expansion, and aspirational spending—particularly in sectors like education, healthcare, and digital services.

Despite global uncertainties, IndiaRss economic outlook remains robust. Key reform initiatives such as PM Gati Shakti, the National Education Policy (nep) 2020, and Digital India 2.0 are aimed at strengthening infrastructure, boosting skilling, and improving education outcomes. Private consumption and services, especially in financial, IT, and education sectors, are expected to be strong contributors to FY 2025-26 growth.

Moreover, IndiaRss growing prominence in global supply chains, focus on local manufacturing through

the PLI (Production Linked Incentive) scheme, and rising exports of digital services are poised to drive long-term competitiveness.

In this context, the education sector is emerging as a key enabler of IndiaRss economic aspirations. Rising enrolments, expanding edtech penetration, and policy thrust on vocational and digital skilling are creating long-term growth opportunities for integrated learning companies like Veranda Learning Solutions Ltd.

Source: https://www.imf.org/en/Publications/WEO/

Issues/2025/04/22/world-economic-out look- april-2025

Global Education Market Outlook

The global education market continues to undergo significant transformation, with an increasing focus on digital delivery, personalised learning, and AI- integrated platforms. According to Morgan Stanley, the global education sector is expected to grow from USD 6 trillion (2022) to USD 8 trillion (2030), driven by digital infrastructure, expanding internet access, and demand for lifelong learning.

EdTech, in particular, is emerging as the fastest- growing vertical within the education sector. With scalable technologies like Learning Management Systems (LMS), AI-based tutoring, and VR-enhanced simulations, the market is witnessing a convergence between traditional education models and next-gen delivery tools.

Source: Morgan Stanley - The Future of Education

Global Higher Education Market

As per Grandview Research, the global higher education market, valued at USD 736.8 billion (2023), is projected to grow at a CAGR of 12.1% (2024-2030), reaching approximately USD 1.5 trillion by 2030. The demand is fuelled by population growth, particularly in India, China, the U.S., and Sub-Saharan Africa, along with the rise of global degree programs and professional certifications.

Trends such as global university collaborations, crossborder online degrees, and a rise in professional skill- based micro-credentials are shaping the modern higher education market.

Source: Grandview Research - K-12 Education Market

Global K-12 Education Market

The global K-12 education market was valued at USD 2.5 trillion (2023) and is projected to reach USD 5.1 trillion by 2030, growing at a CAGR of 12.5% (2024-2030). The areas driving innovation in this space are game-based learning, personalised instruction powered by AI, and immersive technologies like AR/VR. Additionally, global policy emphasis on STEM education, equity, and inclusion is expanding global K-12 education market size.

Source: Grandview Research - K-12 Education Market

Indian Education Market

India holds one of the most expansive and fastest- growing education sectors globally. The Indian education sector is projected to grow from USD 117 billion (FY2020) to USD 225 billion by FY2025, driven by rising internet penetration and a young, aspirational population.

O I ndia had 43.3 Mn students enrolled in higher education in 2021-22.

o The Gross Enrolment Ratio (GER) in higher education stood at 28.4%.

o The number of colleges increased from 45,473 in FY22 to 50,734 in FY24, and the number of universities rose from 1,043 to 1,295 during the same period (as per IBEF, May 2024). The Indian online education sector is expected to reach USD 2.28 billion by 2025, up from approximately USD 0.5 billion in 2022, reflecting a CAGR of around 27%.

Source: IBEF - Education Sector Presentation

Indian Higher Education Market

India now sustains over 1,200 universities and 45,000+ colleges, positioning it among the worldRss top higher- education systems. The latest All India survey shows current enrolment stands at approximately 4.5 cr. (45 Mn) students, continuing a steady 3-4% annual growth since 2018. The Gross Enrolment Ratio (GER) in higher education increased from 27.1% (2020) to 29.7% (2025), as per AISHE (All India Survey on Higher Education) estimates, with the NEP targeting 50% GER by 2035.

IndiaRss R&D spending still hovers near 0.7% of GDP, trailing economies like the U.S. and China, while Ph.D. students make up only about 0.5% of total enrolment. Top enrolment states continue to be Uttar Pradesh, Maharashtra, Tamil Nadu, and Karnataka.

ThereRss a significant uptick in online and hybrid education models, driven by NEP 2020 initiatives (MOOCs, SWAYAM, NDU) and widespread digital adoption.

Internationalisation is gaining traction: Delhi-NCR now hosts University of Southampton, University of Hull collaboration with DTU, University of Leeds with DU, and active cross-border research at Shiv Nadar University.

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Indian K-12 Education Market

IndiaRss K-12 education system, encompassing over 1.55 Mn schools and serving more than 218 Mn students, ranks among the largest in the world by scale and diversity. According to IMARC Group, IndiaRss K-12 education market was valued at USD 54.2 billion (2024) and is projected to reach USD 135.6 billion by 2033, growing at a CAGR of 10.2% (2025-2033). This dynamic growth is underpinned by a confluence of structural reforms, policy shifts, and evolving stakeholder expectations:

Policy-Led Transformation:

With the rollout of the National Education Policy (nep) 2020, the sector is undergoing a seismic transformation-ushering in early childhood care emphasis (foundational literacy and numeracy), multidisciplinary approaches, and a shift from rote learning to critical thinking and experiential pedagogies.

Digital Acceleration in Classrooms:

The widespread adoption of smart classrooms, Al-driven learning platforms, and blended teaching models is revolutionising the traditional schooling experience. From urban metros to Tier II and III cities, ed-tech integration has gone mainstream-empowering educators with real-time analytics and personalised learning pathways for students.

Gamification & STEM-Focused Innovation:

Increasing parental demand for future-ready skills has led to greater adoption of STEM-based curricula, robotics labs, coding programs, and gamified learning ecosystems—particularly in private schools. This trend aligns with IndiaRss ambition to become a global digital talent hub over the next two decades.

Rise of Private & Alternative Schooling Models:

With a growing middle class and heightened focus on quality outcomes, India is witnessing a surge in private schooling networks, international school chains, and alternative pedagogical models like Montessori, Waldorf, and IB. These are backed by a steady stream of private equity and institutional investments in the K-12 space.

Focus on Inclusion and Accessibility:

Government initiatives such as Samagra Shiksha, PM SHRI schools, and Digital India are working in tandem to bridge learning gaps across public school infrastructure, promote digital equity, and build capacity for teacher training and upskilling.

Source: IMARC Group - India School Market Report

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Indian Test Preparation Market

IndiaRss test preparation sector continues to dominate among education services, reflecting an intensely exam-driven academic culture and exhibiting robust growth. Technavio, a global market research and advisory firm, projects that IndiaRss test preparation market will expand by USD 17.21 billion between 2024 and 2029, growing at a CAGR of 18.5%—from an estimated base of around USD 10 billion in 2023.

Primary Growth Drivers

o Competitive exam demand: Exams like JEE, NEET, UPSC, SSC, banking PO, TNPSC, and state-level tests continue to fuel high enrolment in coaching programs across demographics.

o Digital adoption surge: Rising enrolment in online test-preparation platforms and mobile-based learning is bridging urban-rural educational access gaps.

o AI and learning analytics: More providers are deploying AIdriven adaptive learning systems and predictive analytics to personalise preparation, track student performance, and forecast exam trends.

o Education policy & inclusion: Government

initiatives and efforts to expand access in rural and underserved areas are helping to grow the addressable market—and making organised prep more relevant.

Regional and Delivery Trends

Technavio highlights South India (e.g., Bengaluru, Chennai, Hyderabad) as a critical growth engine due to its dense network of premier coaching hubs and high digital penetration. North Indian corridors— especially in Delhi and Uttar Pradesh—drive demand focused on state and central competitive exams. Across both regions, online learning platforms are levelling access and reshaping delivery formats— encouraging broader market penetration.

Market segmentation is broad:

o By Exam Type: University entrance (IITJEE, NEET, CAT), certification (banking, SSC), high school board exams, elementary exams, and language/ vocational tests.

o By EndUser: From K12 through post-secondary.

By Delivery Method: Includes offline classroom coaching, online self-paced modules, live virtual classes, and blended models.

Headwinds and Challenges

While growth is compelling, the market also faces headwinds:

O Fragmentation and competition: The sector is crowded with unorganised tutors and local coaching centers, leading to pricing pressure and accreditation concerns.

o Free-content disruption: Ad-hoc substitutes like free YouTube tutorials and open-source prep tools challenge paid platformsRs value propositions.

o I nfrastructure gaps: Digital disparity in rural areas may constrain full adoption of online models, despite growing demand.

Source: Technavio - Indian Test Prep Market

Reskilling and Upskilling in India

As automation, artificial intelligence, and digital transformation continue to reshape industries, IndiaRss reskilling and upskilling sector is witnessing unprecedented growth. Organisations are rapidly shifting focus from traditional roles to digital-first capabilities, making continuous learning a non-negotiable requirement for career advancement.

The Skill India Mission has already trained over 1.4 cr. youth, creating a strong foundation for skill development. IndiaRss upskilling market is projected to reach USD 3.6 billion by 2025, up from an estimated USD 1.8 billion in 2022, driven by rapid demand for digital-first capabilities. It is also driven by:

o Surging demand for emerging technologies such as Data Science, Artificial Intelligence, Digital Marketing, Cloud Computing, and Product Management, which are now considered critical for modern businesses.

(> The growing popularity of short-term, industry-recognised certification programs, enabling professionals to quickly bridge skill gaps and stay competitive in a fast-changing job market.

O Corporate partnerships with edtech platforms to design tailored workforce transformation programs, combining domain expertise with advanced learning technologies for large-scale reskilling.

According to the World Economic ForumRss Future of Jobs Report (2023), nearly 50% of employees globally will require reskilling by 2025 to remain relevant in their roles. For India, where the workforce is both young and vast, this presents a tremendous opportunity to prepare talent for the future economy.

Looking Ahead: Two Emerging Trends Shaping the Future

AI-powered Career Pathing:

Future platforms will increasingly integrate artificial intelligence and data analytics to guide learners through personalised career roadmaps—suggesting courses, certifications, and projects based on job market trends, individual strengths, and industry benchmarks. This will help reduce skill redundancy and enhance employability across sectors.

Micro-Credential Ecosystems:

As lifelong learning becomes mainstream, micro-credentials and digital badges will gain recognition among employers. These bitesized qualifications—endorsed by industry and often co-developed by academia and edtech firms—will allow learners to build expertise in niche domains without committing to long- duration programs.

Sources: Great Learning - Upskilling Trends, WEF - Future of Jobs Report 2023

Budget allocation in education

Budget Allocation in the Education

The Union Budget 2025-26 continues to emphasise strengthening IndiaRss education ecosystem, with a total allocation of 51,28,650 cr. to the Ministry of Education-marking a 6.2% increase over FY 2024-25.

Key allocations and highlights:

9 78,572 cr. allocated to	Samagra Shiksha Abhiyan receives an additional 53,750 cr. to further improve foundational learning and digital interventions.
the Department of School
Education and Literacy\u2014a 7% increase over the	^ PM-SHRI schools see a rise of 51,450 cr. to expand holistic and smart
previous year.	classrooms.
	PM POSHAN gets a modest increase of 532 cr. for midday meal support.
950,078 cr. allocated to	Central Universities and Technical Institutions have received a boost in funding.
the Department of Higher
Education, up 5.2% year- on-year.	^ PM Research Fellowships continue to support IITs and IISc with 5500 cr.
Technology-driven	520,000 cr. proposed under private R&D incentives, offering opportunities
initiatives:	for EdTech collaborations.
	National Digital Repository to preserve over 1 cr. Indian manuscripts.
	AI Center of Excellence with 5500 cr. to encourage AI learning ecosystems
	in education.
	^ 510,000 new fellowships under the PM Research Fellowship initiative.
Digital infrastructure:	^ Rollout of BharatNet broadband in all government secondary schools.
	^ 5500 cr. to expand Atal Tinkering Labs in 50,000 government schools.

National Education Policy (NEP) 2025 - Major Reforms

The NEP 2025 builds on the transformative goals of NEP 2020 and introduces enhanced reforms focused on digital integration, inclusivity, skill-building, and equity.

Key highlights:

Foundational Literacy and	^ Emphasis on achieving universal FLN skills by Grade 3 through NIPUN Bharat.
Numeracy (fln):	^ Focus on creativity, emotional intelligence, and multilingual instruction
	from early stages.
Restructured Curricular	Adoption of 5+3+3+4 curricular structure, making preschool part of formal
Design:	schooling.
	Curricula redesigned for reduced content load and greater conceptual
	clarity.
Digital & AI Integration:	Coding, AI, and computational thinking introduced from middle school
	onwards.
	^ DIKSHA platform and BharatNet to aid hybrid and remote education
	models.
Skill Development and Vocational Learning:	w Mandatory vocational education between Grades 6-8. Exposure to real-world skills such as carpentry, gardening, AI, robotics, and entrepreneurship.
Holistic Progress Assessment:	Board exams restructured to evaluate conceptual understanding and reduce rote learning.
	r Use of Holistic Progress Cards and peer-assessment encouraged.
Multilingualism and Cultural Context:	Regional languages prioritised till Grade 5 and optionally beyond. Cultural awareness and Indian knowledge systems integrated into mainstream learning.
Teacher Empowerment:	National Professional Standards for Teachers (NPST) introduced.
	Continuous development programs through online modules and certification.
Higher Education Revamp:	Unified Higher Education Commission (HECI) to replace multiple regulators.
	Academic Bank of Credits allows for modular learning and institutional mobility.
Target Outcomes:	^ 100% Gross Enrolment Ratio (GER) in school education by 2030.
	^ 50% GER in higher education by 2035.

Other Key Policies and Strategic Initiatives in Education

Skill India Mission:	^ Over 1.4 cr. youth trained and 54 Lakhs upskilled or reskilled.
	3,000 ITIs strengthened, with enhanced curriculum, industry linkage, and placements.
Educational Infrastructure:	Establishment of 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMSs, and over 390 public universities since 2014.
	^ Boosts research, access, and regional equity in education.

Women in STEM:	^ 28% rise in female higher education enrolment.
	Women now account for 43% of all STEM enrolments in India\u2014among the highest globally.
Financial Inclusion:	Budget support for loans up to 510 Lakhs for students pursuing higher education domestically.
	^ Fellowship support for researchers, women entrepreneurs, and underprivileged students.
Public-Private Partnerships:	Encouraged through AI labs, EdTech pilots, and regional skilling collaborations.

Source:

Strategic Policy Impact on Veranda Learning Solutions

1. Market Expansion and Demand

I ndiaRss demographic dividend—with nearly 26% of the population under 14 years—and a projected total education market size of USD 225 billion by FY2025 create immense scope for education enterprises like Veranda Learning. With the K-12 school segment alone valued at USD 54.2 billion in 2024, the governmentRss push through NEP 2020 (not NEP 2025), PM SHRI school expansion, and increased funding under Samagra Shiksha Abhiyan is driving demand for scalable, high- quality educational models. Veranda, with its footprint across K-12, higher education, test preparation, and upskilling, is well-positioned to provide integrated offerings that align with evolving learner needs and national education priorities.

2. Youth Empowerment and Skill Development

With the Skill India Mission having trained over 1.4 cr. youth and upskilled/reskilled 54 Lakhs individuals, and the governmentRss intent to upgrade 1,000 ITIs and launch 20 Lakhs new training programs, Veranda Learning can actively support youth empowerment. Its subsidiaries like Brain4ce and partnerships with state skill development corporations enable the Company to deliver job-ready skilling programs. Moreover,

NEP 2025Rss push for vocational education from Grade 6 onwards opens the door for VerandaRss hybrid, industry-aligned vocational modules in schools, empowering youth with practical skills for employability.

3. Expansion of Educational Infrastructure

I ndia has added 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMSs, and 390 public universities over the past decade, reflecting its commitment to building high- quality academic capacity. Veranda HigherEd can tap into this infrastructure boom through collaborations with universities for online degrees, professional certificate programs, and continuing education initiatives. Additionally, expanded broadband coverage and smart classrooms in PM-SHRI schools provide VerandaRss digital learning solutions the infrastructure support needed for large-scale deployment.

4. Gender Inclusivity and STEM Education

A 28% rise in female enrolment in higher education and women accounting for 43% of STEM students underscore IndiaRss inclusive growth trajectory. VerandaRss initiatives such as Second Careers for Women and tailored STEM programs for women can further strengthen female participation in high-skill sectors. With support from government fellowships and gender-focused NEP reforms, Veranda can lead in making STEM and professional education more accessible and inclusive.

Summary of Strategic Opportunities for Veranda Learning

Government initiatives under Budget 2025-26, NEP 2025, and allied missions provide Veranda Learning a powerful platform for long-term growth:

National focus on foundational literacy and higher education reforms expands VerandaRss addressable market.

o Skilling and vocational training mandates align directly with VerandaRss offerings through Brain4ce and Six Phrase.

o I nfrastructure and digital investment unlock delivery at scale in underserved regions.

o Gender-focused education policies match VerandaRss emphasis on diversity and empowerment.

o Partnerships with IITs, universities, and schools open up long-term collaboration and content delivery opportunities.

In short, Veranda Learning is strategically aligned to capitalise on IndiaRss transformation into a knowledge- based economy.