The company, established in 2011, reported 34 per cent revenue CAGR (on a proforma basis) in FY23-25 to ₹849 crore with a EBITDA/PAT margin of 25/18 per cent in FY25
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Infographics with Guna Sir
Crizac Ltd, an educational platform for international studies, has launched its IPO which is open till July 4. The company is a B2B platform that acts as an interface between students and their agents in source countries (India, Asia, or Africa) and universities in destination countries (mainly UK, also Ireland, or Canada) for education placements. The company earns a fee from the universities for the same.
The company, established in 2011, reported 34 per cent revenue CAGR (on a proforma basis) in FY23-25 to ₹849 crore with a EBITDA/PAT margin of 25/18 per cent in FY25. The company can sustain the growth momentum owing to increasing disposable income in source countries and growing the agent base on its platform. The IPO is fully offer for sale, valuing the company at 28 times trailing earnings. We recommend investors subscribe to the issue owing to the growth potential of the company and the sector it operates in.
Revenue model
The company has 3,948 registered and active agents on its platform of which 57 per cent are from India and the rest from 39 countries including Bangladesh, Nepal, Kenya, Ghana, and Egypt.
By registering on the Crizac platform, the agents and the students they cater to, can access many more universities compared to if they were to access universities in an individual capacity. Similarly, at the University end, , tying up with credible and proven platforms can ensure a higher conversion rate. This is also part of the performance indicators of the contract Crizac enters with universities as per the management. The company charges the university, generally as a percentage of the tuition fee, as the student enrolls with the university.
On the Crizac platform, agents upload student information along with documents. The Crizac team processes the application as per the destination institution including filtering applications and checking for completeness. The institutions evaluate the application and seek additional data through the platform. The institution pays the company, and the company pays the agents on acceptance. The student/agent can use the proprietary technology of Crizac to track the application, compare applications across agents, analyse historical trends and access institution relevant materials on the platform.
Growth drivers
The proforma statement is used for measuring growth as the company acquired Crizac UK, the technology provider, from the promoter.
On a proforma basis, the company reported 35 per cent revenue CAGR in FY23-25 driven by a 47 per cent CAGR growth in active agents registered on the platform. The company processed 2.75 lakh applications, which grew by 26 per cent CAGR in FY23-25.
The company can sustain the momentum as it adds agents to the platform at a similar rate driven by the demand for international studies. As the middle class and above increased from 31 per cent in 2005 to 66 per cent in 2018, the demand for international studies will increase. The students from India to UK have risen from 1.2 lakh in 2023 to 1.7 lakhs in 2024 and to USA from 2.7 lakh to 3.3 lakhs in the period.
The company also has a price lever as the compensation to Crizac is tied to tuition, the realisation per application has also improved at 6 per cent per annum in the last three years.
Future avenues
The company is increasing its presence in US as a destination country and gradually increasing presence in China as a source country. In US, which is the largest market for international studies, the company has no presence. For the US, the company has entered into a purchase of business agreement with Hyderabad-based Raj Consultants in a distress sale through which it has acquired contracts from 230 US based universities in May, 2024. The company is also increasing presence in China and adding agents onto its platform. The growth from the two segments will be gradual owing to their mature size and established peers but will complement the existing infrastructure of the company over the years. The company also intends to extend its services to visa processing, financing, accommodation and other allied services which will further diversify the revenue streams. The company generated 40 per cent of revenues from outside of India in FY25 which improved from 12 per cent in FY23 and aims further diversify its geographic presence.
The company has a strong cash position of ₹310 crore in FY25 and negligible debt. The company will continue to acquire business focusing in the US, China, and even Australia where its presence is limited.
Headwinds
There are headwinds to international education as is evident with Trump restrictions on campuses or the resistance for international migration in Europe. But the universities in destination countries have generated $280 billion in 2024 from international students and the current headwinds are likely to subside in view of the opportunities on both sides.
Published on July 3, 2025
