Lawsikho
Addictive Learning Technology limited
Our company is a professional upskilling and career services edtech platform which caters primarily to senior & mid-career professionals, and in some cases to young professionals as well. We also cater to college students looking for advanced skills and recent graduates who are struggling to find jobs. Our company offers upskilling courses which includes Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing and Data Science through three distinct brands LawSikho, Skill Arbitrage and Dataisgood.
their website - https://lawsikho.com/
LAW SIKHO
It consists of three sub-verticals which are described as follows:
a. Legal Upskilling - It focuses on providing upskilling opportunities in the domestic as well as international market. Example International - US Intellectual Property, Tax , Accounting, Bookkeeping, Corporate Compliances, Technology, Real Estate, International Contract Drafting, International Business Law, International Labour Laws,
Example domestic - Diploma in Advanced Contract Drafting Negotiation and Dispute Resolution, Technology Law Fintech Regulation and Technology Contracts,M&A Institutional Finance and Investment Laws, Corporate Litigation, General Corporate Practice, IP Media and Entertainment, Labor Employment and Industrial, English Communication, Corporate law and Practice
More details here - https://rb.gy/zroiay
b. Test prep - It focuses on preparing the students for standardised assessments & competitive exams. Some of our popular test prep courses are judiciary test prep courses, bank law officers exams, CLAT (PG), UGC, NET/JRF, CIPP/CIPM, Independent Directors’ Self-Assessment Test and other test prep courses
c. International Bar Exams - california bar exam, uk solicitor qualification exam, canada bar exam
SKILL ARBITRAGE
Diversifying their educational offerings. By entering domains like compliance, HR, finance, bookkeeping, content writing and business consultancy, they showcased their commitment to holistic professional education.
Here are all the skill arbitrage courses - Skill-arbitrage
DATA IS GOOD
“DataIsGood” empowers individuals to navigate the dynamic world of data science and technology. It believes in facilitating successful transitions for those coming
from non-tech backgrounds, equipping them with data science skills and knowledge
More details here - https://dataisgood.com/
DEPL (DataIsGood Edutech Private Limited) was acquired on August 26, 2023 with 3.36cr as cash component and 13.5 lakh shares out of which 25% is issued as on date to Ankit Maheshwari
However, this vertical does not make any contribution to the revenue as of August 31,
Did 36 lakh sales in december 2023 out of this 34% was from USA.
Total Student year wise - 5169 7792 4954 2137
Annualized this year - 12405
Did 50 cr sales as on Dec 2023, this year 60cr + close to 70cr is their target
Collaborations and partnerships
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They are an approved training partner by NSDC (National Skill Development Corporation) which operates as a PPP under the Ministry of Skill Development and Entrepreneurship of the GOI. Upon course completion,you will receive a co-branded certificate bearing the names of NSDC and Skill India.
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Texas A&M University School of Law, a distinguished member of the Texas A&M University outlines the establishment of an LLM degree program with a specialised emphasis on U.S., Indian, and international law.
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Warsaw University of Poland has established a partnership agreement with them.
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Entered into a collaboration agreement with Swiss School of Management. The
What are they doing differently??
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The entire model of trying to educate which can be practically applied and then trying to get you are remote international JOB is very unique
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They prioritises skill development and career outcome over purely theoretical pursuits. It provides a wide range of educational products and services, including courses, training programs, live workshops, practical assignments, outreach initiatives, profile building initiatives, performance coaching and networking opportunities. This ensures that learners receive a well-rounded education that not only imparts theoretical knowledge but also fosters practical skills crucial for professional success. Training sessions, practical exercises, mentorship, and real-world case studies come together to create a dynamic and immersive learning environment.
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Their strategic initiative involves establishing an all-inclusive placement platform within their ecosystem which connects recruiters and students, streamlining the placement process. Their comprehensive approach encompasses not only matching students
with job openings but also preparing them for interviews and assessments, equipping them with the skills and confidence needed to excel. This singular platform consolidates placement opportunities, interview preparation resources, and networking events, enhancing the overall employability of our students
Page number 184 -186 of RHP should give a better understanding
So the biggest differentiator here is they are not only teaching but also helping u secure jobs and they are not charging for this service either to the employer or candidate.
They have over 100 people in marketing just to get their students placed
Latest update as on 17 april 2024
Their marketing edge
- Marketing through their Blog (iPleaders): So this website had 25 lakh organic visits per month as is a big lead generation for them. They say it is india’s biggest legal blog.
- They have 286k followers on youtube, 154k on Linkedln and 95.6k on instagram
So if you see this year they are at a run rate of selling 12k courses when compared to their yearly IPleaders organic visit of 3cr it is just 0.0004%
In one of the interview the promoter said “”we have enough leads also we have too many leads that we are not able to cater to okay because I don’t have our sales””
I will talk more about their sales team later but this was just to give the context.
Areas of growth and promoters priority
- Doing 20 CR Revenue per month which is a matter of scaling up their sales team as per them rest all is in place. They don’t hire from tech companies, they have special training and it takes 3 months to build a good sales guy. It will take 18-24 months
- He doesn’t want his placement numbers to fall. Like right now he is giving result to 40-50% of his students so this has to be maintained for which the B2B BD has to be developed to get his students a job.
- He wants to build a stronger brand like he says trust is the biggest asset in this industry and it is difficult to build it. When he says people are earning X amount of money remotely, students tend not to believe it. So he want to make a web series to educate people and there are movie makers who approached him.
- New product and innovation
Market size
- “”Indian legal Market Market is $2 billion Legal Services Market and US legal Market is close to $400 billion 200 times bigger . There are 1.5 lakh to 2 lakh law firms which have 2 to 10 to 20 lawyers mostly 2 to 10 if you include even the 20 size then it is 2 lakh law firms 2 lakh law firms they each of them can hire five people remotely that means 1 million job””
- This is only for the law side. Need to get an idea for skill arbitrage and dataisgood
Valuation
At current run rate they are at 54 times PE unlike the screener PE which says 167. Until august 2023 they did a PAT of 3.15cr and they have 1.59cr shares
They are planning to do 4x sales in 3 to 4 yrs. Please note this is an asset light model, these kind of businesses have huge operating leverage as their biggest cost is creating a new course (IP) once you have that done. Basically each new student increases the margin.
From august 2023 to february 2024 they helped freelancers secure 2.4cr worth of job and now they are going to charge 10% platform fees on that
RISK
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Our company is recognised by the name of our brand “LawSikho” rather than Addictive Learning Technology Limited. So consumers can perceive it to be a Law based company which would lead to loss of business from skill arbitrage & data is good.
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When they scale up their business they will have to maintain freelance work/job opportunities. The biggest challenge here is if somebody form india is working for an international company remotely data protection is the biggest fear/risk to the employer so their ability to build trust and sale this is something to watch out
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They will have to keep creating new courses if they want to grow at the pace they have targeted. Lot of initial cost goes into creating a new course, it is like an upfront sunk cost and if the new course does not get the traction then all the time/effort/money goes for a toss
Example - They have a team whose entire focus is on cracking exams and then they sit down and figure out how they have to teach their students. They also buy all courses available in market and with lot of technology and human effort they figure out how to crack the exam
If we see there is a lot of qualitative aspects here, their quality of course is what gives them the edge. So to maintain the growth while introducing new cources and keeping the quality in intact is something to look for
Other RISK
I just read all their 1 star reviews though Indians have a problem of giving 1 star very easily but if the problem stated by everybody is same then it is actually a genuine problem. Here are some common problems .
Problem with login and App
Their nature of business is such that protecting their IP is their priority but to maintain that balance of making your app complicated/difficult to access and protect your IP is key to watch.
I think they have this refund policy and they being in the field of law and they being very expensive and since they have this success ratio of 40%-50% in JOB placement the unsuccessful candidates can be a huge pain to the company. They can do case on you, write bad about you etc etc. So to protect their brand value it is very important to maintain a health job placement.
The company says they have never lost a consumer case on refund
Some bad reviews on it
I have also seen many comments on they being good at marketing, actually if you see their website and they way they present their courses it is very tempting. This is actually a very good point but bad as well because if everything is on the back of marketing then things can just vanish.
Also if we see their business has no recurring revenue, all of my business is from new student, at max a particular student can take 2 courses but it is just like a onetime relation so if they loose the trust in market all of a sudden sales can just fall to 0
There are so many points to cover on this business, very unique and interesting one. I would cover all of them in my next post.
drhp - DRHP.pdf - Google Drive
investor presentation (definitely check it out) - Lawsikho-Investor-Deck-final.pdf - Google Drive
youtube vide (I loved it) - https://www.youtube.com/watch?v=z5Sg7Hh6Vpw
disc- invested,
thankyou
