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Entrepreneurship & Innovation
Educational Initiatives (Ei) in the age of Artificial Intelligence (Case B)
Published:
Dec 27, 2024
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?
Pub Date:
December 27, 2024
Discipline:
Entrepreneurship
Subjects:
Education institutions
Source:
Indian School of Business
Product #:
ISB463-PDF-ENG
Geography:
India
Length:
10 page(s)
₹399.00
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Entrepreneurship & Innovation
Educational Initiatives (Case A): Balancing Purpose and ProfitsEducational 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 inthe 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 A on Educational Initiatives is set in 2018. By then, Ei had a well-established and profitable business model and was one of the best-performing EdTech companies in India. In 2018, some of Ei’s founders and initial investors were looking for an exit, and Ei commenced a search for a new investorto buy out the existing investors.The case serves to understand unique for-profit social entrepreneurship business models to tap the underserved bottom-of-the-pyramid segments in the education sector in developing economies. It can be used to explore how such enterprises can be valued and how they can scale up beyond first-generation entrepreneurs without compromising on the social purpose and mission.
Learning Objectives:
- Develop a unique for-profit social entrepreneurship business model to tap the underserved bottom-of-the-pyramid segments in the education sector in developing economies.
- Understand and address the dilemmas faced by first-generation social entrepreneurs in generating growth capital for scaling up the business.
- Understand the valuation of a for-profit social enterprise.
- Leverage the latest technologies, such as AI, in the education sector.
Published: Dec 27, 2024