K12 Techno Services, the owner of Orchids International Schools, has received its first investment of $40 million (Rs 340 crore) from venture capital firm Kenro Capital. Since September of last year, this is K12 Techno’s third secondary transaction.
Kenro plans to use both primary and secondary investments to purchase a minority stake in K12 Techno. Some employees’ stock will be liquidated as part of the deal, and the education company will receive growth capital. Sofina and Peak XV Partners, two current investors, are anticipated to sell a portion of their shares in the deal.
Piyush Gupta, the former managing director of Peak XV Partners, recently announced the launch of Kenro Capital’s first fund in November. Before businesses and investors are prepared to go public, the firm will concentrate on secondary transactions and offer liquidity.
In addition to running more than 90 Orchids School locations nationwide, K12 Techno Services has six verticals, such as Sparklebox, an online activity kit store, and Eduvate, which offers specialized solutions for curriculum development and school operations.
The company intends to add 100–150 schools under Eduvate annually and 8–12 Orchids schools annually.
In the fiscal year that ended in March 2024, K12 Techno Services’ operating revenue increased from Rs 358.3 crore in FY23 to Rs 429.2 crore. Its losses during the previous fiscal year decreased by 75% to Rs 9.5 crore, but it also generated a positive EBITDA of Rs 80.37 crore during that time.
In order to give Peak XV a partial exit, Kedaara invested in the Bengaluru-based business last year. A $27 million stake in K12 Techno was purchased by Venturi Partners from Navneet Learning LLP, a division of Navneet Education Limited, in May of this year.
