Central regions | Finance, business | Technology & innovation
Russian steel tycoon backs online education
22 Aug '17
Illustrating the growing interest of Russian corporations in online education, Severgroup, a group of companies controlled by steel magnate Alexey Mordashov, has just acquired a 40% stake in Netology Group, East-West Digital News reported.
The shares were sold by previous Netology investors, the Russian funds Buran Venture Capital and InVenture Partners, which fully exited the company.
The financial terms of the deal have not been disclosed, but EWDN has learned that Netology Group was valued in the deal at $50-$60mówhich means that Severgroupís investment amounted to more than $20m.
In addition to this transfer of shares, Severgroup injected a few million US dollars to support company development, a source close to the deal told EWDN.
Netology was founded in 2009 to provide online courses in the fields of Internet projects, web development and e-commerce. Five years later, the company merged with Foxford, a provider of online courses for secondary school students, to form the Netology Group. The deal valued the joint venture at $14.1m.
Currently, the group offers 187 education and training programs, which have been attended by more than 1.2 million people in Russia and beyond, according to the company. Netology Groupís ultimate goal is to build ďa unique model of full online education cycle in RussiaĒ covering ď15 to 20 years of an individualís life.Ē
The Russian online education market is currently estimated at approximately $3bn. Netology Group hopes to see its market share grow from some 1.5% today to 5% in 2021 and is also considering expanding to new markets outside Russia as mid- or long-term plans.