Venturi Partners has announced the acquisition of a $27 million interest in K12 Techno Services from Navneet Learning LLP, a subsidiary of Navneet Education Limited. This is the second secondary round for K12 Techno in the last eight months.
Navneet Education Ltd. revealed in a stock exchange filing that it will sell off a 5.12% stake in K12 Techno for $27 million. It will also retain a 14.35% ownership in the company following the sale. This roughly valued the Bengaluru-based company at $540 million.
Venturi will join K12 Techno’s existing owners, such as Peak XV Partners, Kedaara Capital, Sofina Ventures, and Navneet Learning LLP, in investing from its $180 million inaugural fund to support the management team led by Jai Decosta, CEO.
For those who are unfamiliar, K12 Techno oversees the Orchids International School network.
Navneet Learning LLP will retain a substantial 14.35% interest in K12 Techno Services. Notably, Navneet Education still holds a 93.0% share in its subsidiary, Navneet Learning LLP.
The 14-year-old company offers full stack education, content, and technology services to over 900 educational institutions around the country via its own brand, as well as a curriculum and technology platform.
Under the ‘Orchid’ name, the company provides management services to ICSE and CBSE curriculum schools from kindergarten to X-XII, with locations in major cities such as Bengaluru, Mumbai, and Gurugram.
According to the firm, its brand, content, and technology have been used by over 300,000 kids in India’s K-12 schools. It also claimed a 40% compound annual growth rate for the last five years.
K12 Techno secured funds from Kedaara Capital in September in exchange for a substantial minority ownership in the company. Peak XV Partners (previously Sequoia Capital India) was also granted a partial departure.
K12 Techno will join Venturi Partners’ portfolio of consumer-focused investments in India and Southeast Asia, which already includes Livspace, Country Delight, Believe, Pickup Coffee, and DALI.
According to TheKredible, the company generated Rs 382 crore in revenue in FY23 while losing Rs 39 crore. The company projected to complete FY24 with a revenue of Rs 450 crore and an EBITDA of around Rs 100 crore.
The company noted that EY served as the exclusive financial advisor on this transaction. Navneet Education Ltd’s shares closed at ₹159.95, up ₹2.55, or 1.62%, on the BSE.
