TALi Digital secures deal to promote early childhood learning tools to Indian consumer market
Indian conglomerate The Times Group will invest more than $2 million for a 9.8% stake in TALi under the deal.
Melbourne-based TALi Digital (ASX: TD1) has secured a commercial investment and advertising deal with Indian multimedia conglomerate Bennett, Coleman and Company (commonly known as The Times Group) to promote its early childhood technology products in the region.
Under the terms of an agreement announced today, the Times Group’s strategic investment division Brand Capital International will invest an initial US$2 million (A$2.69 million) into TALi for the receipt of 81.8 million shares (or 9.8% equity) in the company at an issue price of A$0.033 each.
The investment will provide funds for TALi to accelerate the roll-out of its TALi Detect and TALi Train cognitive performance tools, first launched to the Indian market in October via Apple and android apps.
It will be injected into TALi’s balance sheet and deployed through the advertising part of the deal, which will see The Times Group become TALi’s channel partner for marketing and sales of the tools throughout India.
The investment and advertising agreement will provide a platform for TALi products to be directly marketed to consumers via the Times Group’s media asset suite which includes print, television, radio and digital channels.
TALi will receive 100% of the revenue from products sold in the region (after app store fees).
Brand Capital International is permitted to make additional investments up to US$5 million (A$6.74 million) on mutual agreement by both parties and subject to applicable regulatory requirements.
Growth opportunity
The Indian market represents a significant and attractive growth opportunity for TALi Digital.
The nation has the world’s second largest middle-class population with approximately 340 million people and is set to surpass China in size by 2035.
It is estimated that almost one in eight Indian children between the ages of two and nine have at least one neurodevelopmental disorder, representing a direct opportunity for TALi of approximately 30 million children in the company’s target age range.
Global leader
TALi managing director Glenn Smith said the market size will feed the company’s goal of becoming a global leader in the assessment and treatment of early childhood attention disorders.
“We will leverage the Brand Capital International investment to expand in India through The Times Group’s 360-degree media assets [which will] provide us with significant exposure in growing the Indian market opportunity,” he said.
“This agreement validates the opportunity for our [intellectual property] and product platform and highlights how [we] can work with various channel partners to facilitate the roll-out of our product globally.”
The Times Group has a track record of providing much-needed acceleration for global organisations, as well as a launchpad for small-to-medium sized businesses to scale in the region.
It has worked with businesses including Uber, Coursera, Byju’s, Flipkart, Odd Up and 1Worldonline.
Attention difficulties
TALi Digital has developed evidence-based digital tools for children with attention and learning difficulties.
The technology combines more than 25 years of research in developmental psychology and cognitive neuroscience to deliver easy-to-use, game-based digital programs to assess and strengthen attention early in life.
TALi has employed research from one of Australia’s leading neuroscience institutes to build algorithms which produce useful reports for parents, teachers and healthcare partners.