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Edited Transcript of CARU.NS earnings conference call or presentation 17-Feb-21 11:00am GMT

·31 min read

Q3 2021 CL Educate Ltd Earnings Call NEW DELHI Feb 17, 2021 (Thomson StreetEvents) -- Edited Transcript of CL Educate Ltd earnings conference call or presentation Wednesday, February 17, 2021 at 11:00:00am GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Arjun Wadhwa CL Educate Limited - CFO * Nikhil Mahajan CL Educate Limited - Group CEO of Enterprise Business & Executive Director ================================================================================ Presentation -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [1] -------------------------------------------------------------------------------- So as I said, a very good afternoon to everyone, and welcome to the CL Educate Q3 FY '21 analyst call. My name is Arjun Wadhwa. I'm the CFO of CL Educate, and I will be your host this afternoon. Joining me on this call are -- is the senior leadership team of CL. I've got Mr. Satya Narayanan, he is the Chairman of CL Educate and the CEO of our test-prep business. The voice you just heard before me was that of Mr. Nikhil Mahajan. He is our Executive Director and Group CEO of our enterprise business. And also joining us on this call is Mr. Gautam Puri, our Vice Chairman and Managing Director. The way we've structured this presentation -- and I'll move ahead to Slide #4 -- is Nikhil will walk you through the -- just if you just give me a quick second, my apologies. The way we'll structure this presentation is that Nikhil will walk you through the first section of our presentation, and then I'll take you through the remainder of the session. Just going to re-share my slide. My apologies for that short technical issue. Yes, I'm sorry about that. I hope my slide is visible once again. As I said, I'm on Slide #4. And the way we'll structure this is Nikhil will walk you through the first part of our session, which is the strategic shift that we're making in terms of our business. And after that, I'll give you a quick overview of how things are in our -- in the current COVID environment and looking a little bit ahead, give you a quick update in terms of how business has moved in Q3 and what our financials look like. Nikhil, over to you. -------------------------------------------------------------------------------- Nikhil Mahajan, CL Educate Limited - Group CEO of Enterprise Business & Executive Director [2] -------------------------------------------------------------------------------- Yes. Thanks, Arjun, and good afternoon, everybody. Hope all of you can hear me loud and clear. Arjun, can you just go to the next slide? I will start from there. If you are -- all of you are queued in to what's happening in the education industry and especially the edtech industry and how COVID accelerated a certain process of digital transformation and a wave of transactions of not only fundraising but also consolidation in the edtech industry have come to the fore over the last 2 to 3 quarters. If you look at the 3 top fundraisers, BYJU'S have raised close to $1 billion, Unacademy has raised $250 million; and Vedantu has raised about $130 million. And BYJU'S has also gone ahead and done high-value acquisitions, aggregating close to $1.5 billion. Some of them have already been consummated and some of them are in process. But the interesting thing to note in the trend in the last 2 quarters is while the essential feature of the edtech industry has pivoted a bit with the essence of -- that it's not -- it has not remained a pure digital or pure technological play, the presence of an off-line play, off-line presence and off-line customers has become equally critical, which was reflected in BYJU'S acquisition of Aakash. And I see there have been smaller acquisitions by some of these leading edtech players who are off-line or quasi off-line digital players. And I see as the consolidation of the education in the test-prep industry continues, some of the existing leading test-prep players will be extremely valuable and will probably be a potential target for some of these well-funded acquisition -- well-funded edtech companies. Arjun, can you just go to the next slide? In that perspective, we felt that I'd take the -- the market was evolving at a pace. And the space in which CL Educate -- the education business was operating. If you were to differentiate, we were operating in a segment which is predominantly in the age group of 17 and above. Most of the well-funded, like -- players like BYJU'S, Vedantu, et cetera, they have predominantly focused on K-12 tutoring and the JEE, medical space, which is predominantly catering to the age group of 12 to 17. In light of that, we felt that the evolving scenario not only presented a rapid possibility of growth but to achieve a rapid growth, a necessary war chest was necessary. As a consequence, we decided to explore and have chosen to go out and raise additional capital for our digital business which has grown approximately 3x in the last 3 quarters and Kestone for the virtual platform which we launched about 2 quarters ago and has shown extremely good traction in the last 2 quarters. We are looking at a total fund raise of somewhere between $40 million to $60 million, which is spread -- split between CL digital of about $30 million to $40 million; Kestone about $10 million to $15 million. And in the last quarter, to kick start the process, we have appointed bankers to drive forward the necessary process. In CL digital, we have appointed Edelweiss Financial Services as our investment bankers. And in Kestone, we have appointed a U.S.-based -- Bay Area-based banker called Soma Advisory. The process for reaching out to the potential investors has just got started. And as things unfold over the next quarter or so, we'll keep you updated on that process. The main thought process while we reached out -- we've decided on this process of raising capital in 2 of our core business subsidiaries was the way Reliance initially incubated Jio, by making huge capital investment and then decided to recover some of the investments by raising external capital after it has reached a certain threshold, turned profitable and was on the continuous path of rapid customer base expansion. Similarly, SBI created its YONO app, popularized it, invested on it for the last 2 years. And now it is exploring the possibility of monetizing the YONO app to -- for -- as a very independent banking entity to clearly reflect a transition from a conservative banking organization to a digital banking organization. Keeping that thing in mind, we also thought that from CL Educate, we have segregated our digital business into -- digital education business into Career Launcher. And that was the prime reason of reaching out -- starting to reach out to potential investors or raising capital in that 100% digital education subsidiary. Some of the key highlights why we think we are poised for a quick ramp-up and why we think we will succeed is that we have been a technologically innovative company ever since we were created. We have been doing digital innovation on various parameters, on academies, delivery, sales, processes, et cetera. And the CL digital business was incubated inside CL for the past 4 years immediately post IPO. We have now established proven unit economics and have scaled up to a size where I think adequate capital infusion is good enough to scale it to the next orbit. This business is driven by a purely new, young leadership team guided by the core team of CL Educate. And with the dynamically evolving education spectrum, I think the product development and the new customers which we are targeting, I think we are poised for a rapid growth in the coming years in this, specifically, digital education because it helps us to reach to a far greater number of customers which earlier we were not able to do so. Secondly, the key success factor which enables that we will be successful is, we have been delivering outcomes from the Career Launcher brand for the last 25 years. This is a business which is driven by word-of-mouth and the successes which we generate year after year. Secondly, in our products -- product segments which are well-established like MBA and Law, our gross margins are between 65% to 95%. Similarly, the newer products which are coming up like the UPSC, GATE and the National Recruitment Examination. Those are the product segments which we are building out now where their current gross margins are lower. But as those markets are significantly large with a market size of over $10 million per year, we see a possibility of a huge volume ramp-up, and the gross margins should begin to show up after a couple of years. The last but not the least, India is a huge opportunity market. And here, in terms of the volumes -- with a huge market size in terms of the number of students which are available, limited number of seats which are available for various courses or the job opportunities, so the competition intensity in India is always going to be high. And as long as the competitive intensity is high, the number of seats are lower and the number of applicants is higher, the opportunity is going to be phenomenal. Secondly, in the coming decade, we expect the gross enrollment ratio in India to scale up from about 20 to close to about 30. And that will expand the pool of the market we are talking about by close to 50%. And that expansion of the market, the competitive intensity is going to increase further, leading to a further enhanced demand for the products which we offer. Last but not the least, the product segments in which we operate is not where some of the biggest or the bigger test-prep players operate. We are not going to be fighting a battle with BYJU in the K-12 tutoring or the JEE/NEET segment. We have our market leadership in the products like MBA, Law, IPM. We are building out Civil Services. We are building out GATE. And these products offer a significant more in and around a competitive advantage which is provided to us. And that gives us a clear advantage over some of the other players who are either one-product company or who are operating in a limited space. Selling points of the capital which we are proposing to raise between $30 million to $40 million, a large chunk of that will go into enhancing marketing and sales effort, branding, technology and product development and building out a team which is able to scale the business from current levels to 5 to 10x of the current level in the coming years. So the way we are planning to operate is to -- we plan to move the Career Launcher business into a wholly owned subsidiary, the process of which has just got activated, and we should be able to close that process within a quarter. And then raise funds at a revenue multiple. There have been multiple transactions in this space in the last 3 to 4 quarters and there are adequate benchmarks which are available for pure digital business, digital plus off-line businesses. And going by the benchmarks which are available, we expect an appropriate multiple to be applicable to us as well. And we'll come back and see how things pan out over the next quarter or so. Let me now spend a couple of minutes on the fundraise effort at Kestone. This effort is predominantly driven by a proprietary virtual event platform which we built out last year. Now it was not something that effort was triggered by the onset of COVID. We had started building that platform even before the first signals of COVID became apparent. But the process got accelerated in the first quarter of 2020. And a lot of time, energy and resources were deployed to build the product out, and we hit the market in the first week of June. If you look at it, virtual platforms accounted for less than 5% of the overall marketing event spend globally, which was upwards of $1,300 billion. This market -- we expect that in the next 6 years, this ratio of virtual events will increase 4x from 5% to 20% as the market -- the total marketing events market expands 2.5%. So the virtual events market will expand close to 10x in the next 6 years. And probably this is the most ideal time for a big platform to get created out. There have been multiple platforms created by some of the companies, but most of them are not virtual events platform, they are communication platform. More details of this are available, and I'm happy to share them if some more -- somebody is interested. If you look at it, over the last 2 quarters, some of the global clients, which you have been able to say, if you look at the names, they are whose who of the corporate world, especially in the IT space. You have Dell, Microsoft, AWS, Google, Cisco, IBM. And if you look at it, most of them are large tech players and have their own tech platforms, et cetera, but they have selected and gone and partnered with Kestone for using the Kestone platform for the event -- for the virtual events mode. Arjun, can you just go ahead? Back in India, on the same platform, we recently hosted Prime Minister Modi at the World Sustainable Development Summit, which was a 3-day event, and we -- this event was conducted by TERI and funded by the Ministry of Rural -- Renewable Energy. And it was probably one of the largest events we've hosted with global audiences and participants from over 100 countries, and over 8,000 delegates attended the event. The predominant usage of funds -- the biggest market for the virtual events is North America accounting for about -- between 40% to 50% of the total virtual events market. And the business which we have conducted in the last 2 quarters, about 50% of the global business has come from U.S. and Canada. So we are looking for a significant business expansion in North America, Europe and Asia Pacific region. A large chunk of investments will go into sales and marketing effort and investments on building on technology platform and scaling up the backbone to be able to do 100x and 1,000x of events than we have currently done. We will -- there have been a few transactions in this space globally in Airmeet, Hopin. Some of the companies have raised up to $200 million, $250 million in the last 2 quarters. We plan to raise investment most likely in our Singapore subsidiary. But as of now, we are flexible and the capital could come either in the Singapore subsidiary or in the U.S. company, depending upon who the investor is and where is he comfortable investing. And the final decision will be based on discussion with investors and the bankers. Both these capital raise processes, in my opinion, will take about 1 -- we'll have some clarity somewhere between 120 to 180 days. So that's about 2 quarters. But I think 1 quarter from now, we would have made substantial progress, and we'll keep you updated on that progress. Arjun, that's all I have. I think I'll hand it over to you for the next part. -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [3] -------------------------------------------------------------------------------- Thank you so much, Nikhil. And as shared right at the start, we'll be happy to take any questions that you have on the strategic shift that we're making and on any of the areas that we cover over the next 5 to 10 minutes at the end of this session. So I just request you to continue to make a note of your questions, and we'll address them towards the end of the session. Moving forward, this is how things look for us at this point in time. This is true across all of our businesses. So whether I pick up our publishing business, which is running through GKP or our Kestone business or our test-prep business, things have started to reopen a little bit. And especially when it comes to the education side of our business, students are starting to return to their place of study, having migrated almost en masse to their homes. Also, as a result of this, the study centers that we were operating have continued to run as points of sale for the last month, 1.5 months. So we started opening things up a little bit towards the start of this quarter as we look forward. Classes and classroom delivery is yet to get underway in most states. And we will be taking a relevant call here depending on when each state gives us permission to actually recommence our coaching business. Also, we will be taking all necessary precautions to ensure that both teachers and students are adequately protected. Moving forward, though, digital has very much become a way of life, and it will continue to be critical both for our test-prep and our Kestone business. And we see this as something that's going to be critical for the business, not just in this quarter or the next quarter but for many, many years to come. In terms of specifics, we are still not at the levels of revenue that we were pre COVID, and we see some of this volatility continuing for at least the next 1 to 2 quarters. In terms of specific business updates, in Q3 specifically, I'm happy to share that in our test-prep business, billing was up 5% year-on-year. So this is the first quarter post COVID that we've actually seen an increase in billing. And volumes continue to show positive growth. Our total volumes done in Q3, also if I do a year-on-year comparison, was up 17%. Our digital business, as Nikhil shared, has been the cornerstone of our growth over the last 9 months or so, and it's currently operating at virtually 3x what it was same time last year. The MBA business is showing volume growths of nearly 20%. And Law, which you might remember, was just about at the same levels at the halfway stage, is now showing positive volumes and up about 12%. This is predominantly though also because of the change in the examination dates and some amount of business that would have typically happened in Q2 has moved to Q3. If I look at some of our other businesses, the Kestone business continues to show steady recovery. We're showing -- we're seeing EBITDA growth of about 21% in Kestone. And gross margins are up 10 percentage points on the back of a very strong digital base. The -- our CL Media admissions business is -- has had a bit of a tough year with the business having been considerably thrown out of sync as a result of the admission cycles having -- and -- admission cycles and marketing budgets having been affected significantly as a result of COVID. Moving forward, Nikhil spoke briefly about our virtual events platform and give you a glimpse of the Prime Minister at our TERI event. So I'm not going to spend too much time on this, but these are just a few glimpses of what our virtual events platform looks like and what its objective is. We see this as a SaaS-based platform where the objective is towards and experience -- is towards creating a seamless experience far superior to what one would have had if a physical event was taking place on the ground. And as you can see from the visuals that are on your screen, it's absolutely stunning. In terms of some of the features that this platform has, you have interactive booths, it has opportunities for gamification, customized branding. So pretty much, it has -- it almost has the complete works of -- in terms of anything and everything that you could have done in the physical world, plus so so much more, which is why the virtual events platform has done so well in the post-COVID era. And I'm delighted to share that in a research -- a global research done, we were rated amongst the 10 best virtual event platforms that exist. And we are being spoken in similar circles as Cisco's Webex and Zoom and Microsoft Teams and so on. So we're actually competing with the best that there are in the industry. A little bit of a snapshot in terms of what this has meant for business. From a virtual events perspective, we've conducted more than 100 events over the last 6.5 months or so. This has contributed more than $1 million to our top line, and 50% of this business has come from the international route, predominantly from the U.S. and APAC. In terms of our Kestone business, our CEP business has also done remarkably well. This is a business through which we generate leads for our customers. And our customers over this 9-month period have seen more than $500 million worth of new business having been generated from -- for them through our CEP business. So while the physical events business has impacted Kestone significantly, we've bounced back tremendously well on the back of our virtual events platform, which will continue to be a primary driver for this business going forward and also our CEP business having done so well. I have also included a link to a new AI bot that we've launched, which will further accentuate the delivery qualities of our virtual events platform. I won't run you through the link right now for the sake of the time that we have available. But as this PPT is available and this link is available, you can just click on it and it will take you to a relevant video on YouTube where you can see the qualities of this AI bot that we've created to go with our virtual events platform. In terms of our institutional business, we've made a few pivots in terms of the way it's being run. We've moved from a largely outcome-driven business to a leads and an outreach-driven business, where our focus is a lot more on advanced collections so that this business continues to thrive and continues to do well. And we hope with -- if the next couple of quarters we see a movement towards a better admission cycle, we hope to go back to the levels that we were pre COVID. In terms of our financials, this is just a little bit of a pre-snapshot. In terms of enrollments, we are down barely 9% compared to the same time last year. So we managed to mitigate the COVID impact significantly, especially in terms of market share in key product categories. As I shared previously, our MBA and Law enrollments are actually up about 20% and 12%, respectively. The reason why our numbers are down is very clear. If you look at this portion of the screen that I'm pointing to right now, our touch business, which is what we would typically do through our physical study centers, is down from about 44,000 to about 14,000. The online business, on the other hand, has grown about 1.5x. From a Kestone perspective, the fact that we're doing a digital business has meant that our customer base has actually grown almost 1.5x, which is a very positive sign for the future as well. In terms of consolidated revenues, you remember at the halfway stage, we were at about -- operating at about almost 50% on a Y-on-Y basis. I'm slightly happier to share that if I were just to look at the Q3 numbers on a stand-alone basis, we've done about INR 46 crores of revenue at a consolidated level against INR 69 crores same time in Q3 last year. So we've moved from a 50-50 -- from a 50% to a 67% number in terms of catching up with where things are from a pre-COVID perspective. We've managed to keep our EBITDA margins fairly competitive. We were operating at about 12% in the first 9 months of last year, we're at about 9% this year. In terms of cash, this is something that we look at very strategically right throughout. And especially given the current times, we've kept a very close eye on this. We started the year with a net cash position of about INR 18 crores. And presently, we've managed to raise that number to about INR 30 crores. So we've not only brought down our borrowings, we've also managed to increase our cash accruals despite COVID over the last 9 months. A quick update on the merger. This is my last slide, and then we'll throw it open to questions. The merger, we had filed an emergency petition request for an early hearing, which was fortunately entertained by the NCLT bench in October. The second motion petition notice was issued to all statutory and regulatory authorities to appear and a date of hearing of 28th January had been fixed for the same. Unfortunately, on the date of the hearing, the NCLT bench was reconstituted and that hearing was postponed to 15th February. And regrettably, on 15th February, which was this Monday, day before yesterday, the judge was unable to attend the meeting due to personal reasons, and we expect a fresh date for this hearing to be assigned to us tomorrow. We still hope that if we can get an early date and if things do not get postponed significantly, we could still hope to conclude our existing merger by May of this year, in time for the publishing of our financials. However, should we get a date which is more than a month or so down the line, the merger process could well get pushed into next year. That's it from me in terms of specifics. I'd now like to throw the floor open to questions. We will continue to do it in the mode that we did last time. I'd like to request you if you have any questions to just put them on the chat window, and Nikhil and I would be happy to address them. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Nikhil Mahajan, CL Educate Limited - Group CEO of Enterprise Business & Executive Director [1] -------------------------------------------------------------------------------- Thanks, Madhu, for your question, which is what has enabled Kestone reach a market position -- leadership position in the market? Is it price-sensitive business? What margins can we expect from it? I think what has enabled Kestone reach to a leadership position is the product itself. If you have a look at the product, I think there's -- at least having gone through multiple platforms, and I don't want to be self-boasting. But I think the platform which has been created is absolutely world-class. And this feedback has come from the customers of the likes of AWS, Cisco and Google. It is not that much a price-sensitive market. However, as and when a customer who initially gives you 1 or 2 events and wants to scale up to 100, obviously, some bit of pricing adjustments will take place. This is a gross margin business, which will generate a gross margin of somewhere between 70% to 75%. However, I think the more critical thing is I'm not focusing on the margins and the profitability for the next 12 months. What I'm focusing is on how much can we grow this virtual platform in U.S., Europe and the other international markets, which pay a pretty significant premium over what the Indian market pays. I think growth and acceptability of the platform over the next 6 quarters is the most critical thing, and that's what we are focusing on. Besides upgrading the product to make it world-class, some of the new features like the AI bot, which Arjun talked about, the do-it-yourself version is going to be ready sooner than later in about a quarter, and some other new additional features of e-commerce and marketplace selling at the e-conference, those features are being built upon. And I think we should be ready with some of those additional features in the next 2 to 3 quarters. -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [2] -------------------------------------------------------------------------------- Thank you, Nikhil. I'll just wait another couple of minutes to see if there are any other questions. Meanwhile, I'll take this opportunity to remind you that I've listed our contact e-mail addresses on the screen. I'm available at our arjun.wadhwa@careerlauncher.com. My colleague, Amit Kanabar, who also handles Investor Relations, his e-mail address is also on the screen. And you can also reach us at investors@careerlauncher.com. Also, I've shared the e-mail addresses of our Wisdom IR team, Ajay and Nirjhar. Please feel free to get in touch with any of us if you have any further questions after this call. All right. So if there are no... -------------------------------------------------------------------------------- Nikhil Mahajan, CL Educate Limited - Group CEO of Enterprise Business & Executive Director [3] -------------------------------------------------------------------------------- Subrat, let me take that. You have questions. Will it be a QIP, rights issue? No, we are not raising capital in the listed parent entity. We have decided to transfer. We are in the process of transferring our digital business into 100% owned subsidiary, and the capital will be raised in that 100% subsidiary. And once the capital is raised, depending upon the dilution, the dilution of the parent entity's stake in that subsidiary will take place. Similarly, the capital raise in Kestone will happen in either our 100% subsidiary in Singapore or its 100% subsidiary in U.S. So depending -- so it's not going to be a QIP or a rights issue in the listed entity as of now. -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [4] -------------------------------------------------------------------------------- Okay. So I see a few more questions have come in. In Kestone, we already had a virtual platform which we fine-tuned later? Or has it been created during the COVID outbreak? As Nikhil had shared earlier, we had started the incubation of the virtual events platform idea inside Kestone a little bit before the COVID outbreak had happened. This was already part of our business plans going forward. What COVID did was force us to accelerate the speed at which this platform was developed. And it allowed us to -- with the physical events completely having got discontinued, it forced us to test this and pilot it out over the last few months. It has done remarkably well over this time period, and we continue to be very bullish on it. There's another question from Subrat Das. Is ICE GATE owned 100% by CL? Currently, Subrat, ICE GATE is a subsidiary where we have a 57% stake, and we have the rights to take that stake higher over the next couple of years. There's a question from Anand Balan. Who are our competitors? Okay. So yes, there is a question from Anand Balan, who are our competitors for the job segment at the national level, especially in banking and UPSC? Anand, there are a lot of competitors. There are some traditional players who have existed in the UPSC space like Vajirams, Rau's Study Circle and so on. These are more than 30, 40-year-old companies that have operated in this space. A lot of these players, though, tend to be fairly regional or at most multiple city base. A lot of them don't necessarily have a pan-India presence. And especially a lot of them don't have a platform and a technology-driven approach to learning. There have been some changes in this over the last year or so with the likes of Unacademy doing really well in this space as well. So from a technology player perspective where they operate largely as an aggregator, there is competition for us in this space from the likes of Unacademy. I hope that addresses your question. There's also a question, how open are we to seeking an outside opinion, particularly criticism? And also, can you throw more light on the corporate culture at CL and how it has been taken care of during recruitment? I'll just spend a quick 30 seconds on this. We're very open to feedback. In fact, if you look at our core values, which -- we start every investor presentation deck with a slide called ROOHI, which talks about our core values and one of those core values is ownership. There's another one called openness. There's honesty and commitment to customers. So our openness to feedback, our openness to criticism, especially, is very much there. And we -- what we like to do is this is very much part of our DNA, and it's just true for each and every CLI that exists as part of our ecosystem. And we'd be happy to spend more time on walking you through this perhaps at a later stage on a one-on-one basis if you have more questions on the same. Nikhil, there's a question on examples in regards to Kestone Singapore's fundraising. Maybe you'd like to spend a little bit of time on Airmeet and Hopin? -------------------------------------------------------------------------------- Nikhil Mahajan, CL Educate Limited - Group CEO of Enterprise Business & Executive Director [5] -------------------------------------------------------------------------------- Hopin is a U.S.-based company which is about 3 years old. They raised initially about $40 million at the beginning of calendar year '20 -- 2020. Their virtual platform began to scale up with the outset of COVID. And they raised another $200 million or a similar amount in December 2020, which facilitated them to acquire ScrapYard (sic) [StreamYard], a leading video streaming player, because that's an integral product technology, which they use for their video platform. So that was one thing which happened in the U.S. In India, there's a platform called Airmeet which got initially funded last year by Sequoia. They raised about $12 million. It's a 1 year -- less than 1-year old organization. They have done a few events -- few hundred events in and around within India. As of now, I don't know how well they have scaled up. But the market is now beginning to expand and the acceptability of some of the key corporates is beginning to happen because doing events or virtual platforms are as good as doing live events at probably 1/4 of the actual cost. And we don't expect -- as I had shared in part of my presentation, we expect virtual events to jump up from 5% to over 20%, 25% in terms of the overall events and marketing spend by 2026 globally. I hope I have answered that. If there's any further question, happy to... -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [6] -------------------------------------------------------------------------------- Thanks, Nikhil. I'll just take one last question, and then we'll will wind up and we'll put up an FAQ section -- FAQs on the fundraising on our website. -------------------------------------------------------------------------------- Nikhil Mahajan, CL Educate Limited - Group CEO of Enterprise Business & Executive Director [7] -------------------------------------------------------------------------------- Arjun, I just want to take -- there is a question from Ankur on our last year deal with Delhi government on the use of aspiration.ai platform. So Ankur, last year, we did -- we offered this platform to Delhi government on a pilot basis. It was an 8-week engagement. Over 120,000 students benefited from use of the platform. However, of that -- we are in talks with various people through either AWS or Intel, who are the prime technology drivers of this initiative. However, last 2 quarters, this activity has a bit slowed down in terms of -- because of government's significant focus and dependence on handling COVID. I think as and when things begin to come back and their focus on this bit gets -- they begin to refocus on this thing, these stocks will restart. As of now, we are also cautiously evaluating and speaking to a few players in Africa about its potential, but those are very initial days. And as of now, there is nothing too concrete on that at this point of time. -------------------------------------------------------------------------------- Arjun Wadhwa, CL Educate Limited - CFO [8] -------------------------------------------------------------------------------- Thank you, Nikhil. I think I'll take that as an opportunity now to wind up this session. Thank you, everyone, for coming in today. As I said, if you have any additional questions, please feel free to reach out to any of us. Stay safe, stay healthy, and we'll see you all at the end of the next quarter. Thank you.