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Entrepreneurship & Innovation
Educational Initiatives (Ei) in the age of Artificial Intelligence (Case B)
Educational Initiatives (Ei) is an India-based education enterprise set up in 2001 with the vision of creating a world where children everywhere are learning with understanding. It was cofounded by a team of talented management professionals who shared the goal of making a positive difference in the education space by using business and technology as instruments. It pioneered state-of-the-art pedagogical, information, and communication technologies in education much before the term EdTech became popular.
Case B of Educational Initiatives starts with the investor choice made in 2018 and describes how Ei was contending with the latest technological developments, such as AI, in 2023.
In 2023, Ei faced the prospect of another potential change in ownership in the next 2–3 years, and the related question of the type of investor to go with for the next round. Ei achieved substantial growth during the 2019–23 period, making it possible for it to go for an initial public offering (IPO) in a couple of years. However, profitability margins had stagnated in recent years, raising the question of whether Ei should focus solely on the private school segment, where the price realizations are higher, and also move more aggressively into international markets.
Learning Objectives
- Should Ei spin off the government school business as a separate entity and focus solely on private schools, where the price realizations are higher, and move more aggressively into international markets?
- Is the advent of AI technologies a positive or negative factor for Ei’s future prospects? Assess Ei’s readiness for the AI revolution.
- Will the new cohort of investors mean a change of strategy for Ei, and if so, how can the Ei leadership shape the investor choice for the next round?
- How will the new investor search and parameters differ from those of Round 1? Will a consortium of investors be better or a single investor? Should Ei go for an IPO, and if yes, is it ready for it?
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