Kedaara Capital has invested a significant minority stake in K12 Techno Services Private Limited, a leading education and technology services provider in India that runs the chain of Orchids International Schools.
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The transaction will also provide a partial exit for Peak XV (erstwhile Sequoia Capital India), one of K12’s existing institutional investors.
The financial details of the transaction were not disclosed by the parties, but two people aware of the development told VCCircle that Kedaara may have invested ₹1,300-1,500 crore ($156-180 million) in the Bengaluru-based K-12 school operator.
K12 Techno Services was incorporated in March 2010 by M. Venkatanarayana and his son M.S.C. Srikanth to provide education services to state board schools under Sri Gowtham Academy of General and Technical Education. In 2016, the promoters exited the company, and it was acquired by Sequoia Capital and Navneet Learning.
Under the new management, the company provides management services to ICSE and CBSE curriculum schools from kindergarten to X-XII, based in large metros like Bengaluru and Mumbai under the ‘Orchid, The International School’ brand.
The company provides full stack education, content, and technology services to over 900 educational institutions across India through a combination of its own curriculum and a technology platform.
K12 Techno has helped schools bridge the gap between students and accessible, holistic education by leveraging technology and process orientation. The company provides academic support, upgraded teaching methodologies, and management services to ensure high-quality outcomes. K12 Techno’s tech-enabled offering is available at affordable price points, making it accessible to a larger audience.
Kedaara Capital’s investment in K12 Techno Services is in line with its strategy to invest in businesses that offer enduring value and growth potential. The convergence of values and aspirations between Kedaara and K12 Techno makes it a promising partnership. The investment will enable K12 Techno to expand its reach and upgrade its tech stack to enhance learning models and outcomes.
K12 Techno’s holistic education services and process orientation have made it a trusted brand in the K-12 space. The company’s curriculum schools, Orchid, The International School, have a strong presence in large metros like Bengaluru and Mumbai. K12 Techno’s professional management team has helped the company achieve steady revenue growth and a high valuation. The company has also attracted investments from existing investor Navneet and Sequoia, as well as Sofina and Unacademy.
In addition to its investment in K12 Techno Services, Kedaara Capital has made several other strategic investments in the education sector, such as education-focused lender Avanse Financial Services. Kedaara Capital’s investment in K12 Techno Services Private Limited is expected to help the company continue to grow and succeed in the highly competitive education sector in India.
