Meritto, an enrolment automation company backed by Info Edge, has bagged investments from IIFL Capital and SBI Capital for its ambitious IPO. The public offering is aimed to raise between ₹500-600 crore. According to a report by Moneycontrol, this Gurugram-based firm aims for a ₹2,000 crore valuation in the market and plans to submit its draft red herring prospectus (DRHP) in the coming months, maximum by the end of this year.
Their website introduces itself as SaaS + Embedded Payments platform that aims to empower educational organizations to drive revenue growth and improve operational efficiency in the Student Acquisition layer.
Sources at the Moneycontrol indicate that the current market environment is unstable, particularly affecting small-cap firms. While the company’s promoters have high expectations, the ultimate outcome will depend on market responses regarding IPO size and valuation. The benchmark indices, including the Sensex and Nifty, have seen significant declines—nearly 15% from their September highs—due to geopolitical tensions and trade war concerns, with the Nifty Smallcap100 and Nifty Midcap100 indices dropping over 25% and 21%, respectively.
Meritto specialises in customer relationship management (CRM) software tailored for educational institutions, facilitating enrollment, communication, fee collection, and alumni engagement through its Merrito brand. For FY24, the company reported revenues of ₹70 crore and a net profit of ₹4 lakh. However, in the first nine months of the current fiscal year, it recorded revenues of ₹67.7 crore alongside a loss of ₹50 lakh. Despite this, the company is experiencing a 40% year-on-year growth rate, leading to optimism about its profitability.
With over 1,200 clients, Meritto is also looking to expand internationally. CEO Goyal highlighted the potential of the Indian education market, projected to reach ₹25,00,000 crore by FY28, positioning Meritto as a key player for institutions seeking operational efficiency and revenue growth. The government’s goal to increase the Gross Enrolment Ratio to 50% by 2035 further underscores the demand for advanced educational technology.
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This IPO will mark the third public offering from Info Edge, which has previously seen substantial returns from its investments in companies like Zomato and PB Fintech. However, the share prices of these firms have recently declined, impacting Info Edge’s valuation.
