EdServ Softsystems to raise $25 mn to fund expansion

Education and placement company EdServ Softsystems today said it plans to raise $25 million through Global Depository Receipts or Foreign Currency Convertible Bonds to fund its expansion in the school and online tuition services markets.

"The proceeds of the issue will be utilised to fund the expansion plans in the schools segment and online tuition services market, content development and infrastructure expansion," EdServ Softsystems Chairman and CEO S Giridharan said.

The Chennai-based firm will also use the funds for expanding its presence in the higher education and career placement segments, he added.

The fund-raising process is subject to shareholders approval at the EGM (Extra-Ordinary General meeting) to be held in Chennai on January 11, 2010.

"Post the EGM approval, we expect the GDR/FCCB issue is expected to be completed by April or May next year," he said.

EdServ wants to extend its presence to 250 schools over the next 12-18 months from the current 50 schools.

"We also plan to upgrade our learning management system tool to accommodate school and college management systems. Our target is to partner with leading universities across the country and to have a strong pan-India presence over the next 12 months," Giridharan said.