Venturi Partners Invests in K12 Techno Services, Backing Education Technology Provider

Venturi Partners, a growth equity firm specializing in consumer investments across India and Southeast Asia, has announced a significant investment in K12 Techno Services. The deal involves acquiring a 5.12% stake in the company for $27 million from Navneet Learning LLP, a subsidiary of Navneet Education Limited.

Navneet Education Reduces Stake, K12 Techno Valuation Soars

This transaction marks Navneet Education’s partial exit from K12 Techno. Following the divestment, they will retain a 14.35% stake in the company. The investment by Venturi Partners values K12 Techno at approximately $540 million.

Venturi Joins Existing Investor Group

Venturi’s investment leverages their $180 million maiden fund. They join K12 Techno’s established investor base, which includes Peak XV Partners (formerly Sequoia Capital India), Kedaara Capital, Sofina Ventures, and the remaining stake held by Navneet Learning LLP. This collective support strengthens the company’s position under the leadership of CEO Jai Decosta.

K12 Techno: A Leading Education Service Provider

K12 Techno, a 14-year-old company headquartered in Bengaluru, operates the well-known Orchids International Schools chain. Beyond its own schools, the company provides comprehensive educational services, encompassing content and technology solutions, to over 900 educational institutions across India.

Their offerings span various brands and a dedicated curriculum and technology platform. K12 Techno caters to ICSE and CBSE schools across major cities like Bengaluru, Mumbai, and Gurugram, managing institutions from kindergarten to grade 12th under the “Orchid” brand.

Impressive Growth Trajectory and Market Reach

K12 Techno boasts a significant presence in the Indian K-12 education space. Their brand, content, and technology solutions have been adopted by more than 300,000 students. The company claims consistent growth, reporting a compound annual growth rate (CAGR) of 40% over the past five years.

Previous Investment Round and Expansion Plans

In September 2023, K12 Techno secured funding from Kedaara Capital, resulting in a significant minority stake acquisition for the investment firm. This transaction also facilitated a partial exit for Peak XV Partners.

Venturi’s Portfolio Alignment

With this investment, K12 Techno joins a distinguished portfolio within Venturi Partners. The firm focuses on consumer-driven investments across India and Southeast Asia, with holdings in companies like Livspace, Country Delight, Believe, Pickup Coffee, and DALI.

Financial Performance and Future Outlook

According to data platform TheKredible, K12 Techno reported revenue of Rs 382 crore in FY23 with a net loss of Rs 39 crore. The company projects a more promising financial performance for FY24, anticipating revenue to reach Rs 450 crore with an EBITDA (earnings before interest, taxes, depreciation, and amortization) of nearly Rs 100 crore. This indicates a trajectory towards profitability.