A $27 million stake in K12 Techno Services has been acquired by Venturi Partners from Navneet Learning LLP, a division of Navneet Education Limited. In the past eight months, K12 Techno has had two secondary rounds.
Navneet Education Ltd. revealed in a stock exchange filing that it will sell off a 5.12% stake in K12 Techno for $27 million. After this deal, it will still own a 14.35% share in the company. This gave the Bengaluru-based company an approximate $540 million valuation.
Venturi will support the management team headed by K12 Techno CEO Jai Decosta by investing from its $180 million maiden fund alongside current shareholders Peak XV Partners, Kedaara Capital, Sofina Ventures, and Navneet Learning LLP.
For those who are unaware, K12 Techno is the company behind the Orchids International School chain.
The 14-year-old company uses a combination of its own brand, curriculum, and technology platform to offer full stack education, content, and technology services to over 900 educational institutions nationwide.
Based in major cities like Bengaluru, Mumbai, and Gurugram, the company offers management services to ICSE and CBSE curriculum schools from kindergarten to X-XII under the “Orchid” brand.
Over 300,000 students in India’s K–12 system have reportedly used the company’s brand, content, and technology. During the previous five years, it asserted to have grown at a 40% CAGR.
In September, K12 Techno secured funding from Kedaara Capital in exchange for a sizeable minority shareholding in the business. Moreover, Peak XV Partners (previously known as Sequoia Capital India) was given a partial exit.
This will add K12 Techno to the portfolio of consumer-focused investments that Venturi Partners has made in India and Southeast Asia, which already includes DALI, Pickup Coffee, Country Delight, Livspace, and Believe.
The company reported revenue of Rs 382 crore in FY23 and a loss of Rs 39 crore, according to TheKredible. With approximately Rs 100 crore in EBITDA, the company anticipated ending FY24 with revenues of Rs 450 crore.
