Venturi makes a secondary bet on K12 Techno for $27 million

Singapore-based private equity firm Venturi Partners Pte. Ltd has acquired a 5.12% stake in K12 Techno Services Pvt. Ltd from Navneet Education Ltd for ₹225 crore ($27 million), according to a joint statement from the companies.

However, the firms did not disclose other financial details of the transaction. K12 Techno Services is the operator of the Orchids International school chain.

Since 2013, Navneet Education has invested ₹118 crore in K12. It has now divested some of its stake in the company, but will retain 14-15%, according to two people in the know, seeking anonymity.

K12 also counts Peak XV, Sofina Ventures, and Kedaara Capital as its investors. 

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According to the people cited above, the deal valued K12 at ₹5,000 crore. In September 2023, the company was valued at ₹3,800 crore, when Kedaara Capital invested ₹1,200 crore to pick up a stake from Peak XV (formerly Sequoia Capital India). 

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“This is a multi-bagger partial exit for Navneet Education, which has taken money off the table, but continues to hold a sizeable stake,” one of the two people said. “Venturi is likely to increase its stake, going forward.” 

In response to Mint's queries, Rishika Chandan, managing director, Venturi, said: “Venturi is committed to supporting the company with further capital requirements as it scales its platform.” 

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Venturi Partners, which specialises in consumer investments across India and Southeast Asia, has backed the likes of Livespace, Country Delight, Believe, Pickup Coffee and DALI. It is currently investing from its $180 million fund. 

‘Investment reflects underlying demand-supply mismatch for high-quality education in India’

Venturi Partners' investment in K12 Techno reflects the underlying demand-supply gap for high-quality education in India, according to the statement. 

“Venturi’s values are well aligned with K12 Techno’s mission to leverage technology and provide world-class holistic learning and improved outcomes at scale,” said Nicholas Cator, founding Partner, Venturi.

K12 Techno offers end-to-end education-related services to over 800 private educational institutions, catering to more than 300,000 students across India. 

The company's revenue has seen a compound annual growth rate (CAGR) of around 40% over the past five years. “The company is likely to clock ₹500 crore in revenues in FY 25,” the second person cited above said. 

“By leveraging technology, alongside bespoke learning methodologies crafted for the Indian landscape, we aim to scale our impact and elevate educational outcomes,” said Jai Decosta, chief executive, K12 Techno.