The co-investment
will contribute to the objective of improving the quality of education in
México, where 31 percent of businesses identify inadequately educated workforce
as a major constraint. Founded in 2015, Lottus Education provides quality
education to low and middle-income students through its three assets for more
than 45,000 students: Universidad Tres Culturas (UTC), Universidad
Latinoamericana (ULA) and Colegio Indoamericano.
IFC's investment alongside Alta Growth Capital and existing
Lottus Education investors will help Lottus Education to make strategic
purchases in the sector as well as expanding its territorial coverage and
adding more than 30,000 students to its portfolio. IFC will also support Lottus
Education through the Digital For Tertiary Education Program (D4TEP), a program
created with Deloitte Consulting to help universities in the development,
implementation and financing of their digital transformation. This investment
will have a direct impact for the technological evolution of Lottus Education
and the digital journey of its students.
Mario Gonzalez, CFO
of Lottus Education, said: "Our mission and obsession is to revolutionize
the sector by fostering the access to good education and through the assurance
of high-quality employment to our students. This is a terrific milestone for
Lottus Education. IFC will contribute with resources to accelerate the digital
transformation of our group. This investment also demonstrates the strong
support of the international investment community in the education sector. We
are thrilled to join forces with the IFC and get Alta's continuous support on
this journey."
Elena Sterlin, IFC's
Senior Manager for Global Health and Education, stated: "Lottus Education
accomplishes its quality standards and breadth of curriculum at a remarkably
low cost to its students: tuition rates at its schools are 30-50 percent below
rates of competitors. Such low tuition rates make education more accessible for
low and low-middle income students in a country where only two percent of
students from the poorest quintile are enrolled in tertiary institutions".
Erik Carlberg,
Managing Director of Alta Growth Capital, highlighted, "Even with the
challenges of the COVID-19 pandemic, Lottus's management team redoubled efforts
to support the student experience through an improved virtual platform and is
still expanding its education platform through strategic acquisitions. We are
very excited about this follow-on investment and eager to continue supporting
Lottus Education on its spectacular growth path."
Demand for education is soaring. The number of higher
education students is projected to more than double by 2025. Most of this
growth will come from the emerging markets. Meanwhile, youth unemployment
continues to grow globally, even as employers report difficulty in finding
workers with the right skills. IFC is strongly committed to increasing the
access of the most vulnerable sectors to high quality education.
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