Kedaara picks stake in Orchids schools owner
VCCircle that Kedaara may have invested ₹1,300-1,500 crore ($156-180 million) in the Bengaluru-based K-12 school operator. “India has over 260 million students enrolled in the K-12 segment, that aspire for accessible, and holistic education. K12 Techno has helped schools bridge this gap by leveraging technology and process orientation," said Sunish Sharma, founder and managing partner, Kedaara Capital.
K12 Techno Services was incorporated in March 2010 by M. Venkatanarayana and his son M.S.C. Srikanth to provide education services to state board schools under Sri Gowtham Academy of General and Technical Education.
It made losses as it provided services to low-cost state board schools. In 2016, the promoters exited the company, and it was acquired by Sequoia Capital and Navneet Learning. Under the new management, the company provides management services to ICSE and CBSE curriculum schools from kindergarten to X-XII, based in large metros like Bengaluru and Mumbai under the ‘Orchid, The International School’ brand.
The company provides full stack education, content, and technology services to over 900 educational institutions across India through a combination of its own curriculum and a technology platform. While Navneet and Sequoia have been investors for almost a decade, Sofina came in 2020 with an investment of ₹199.4 crore. In 2021, SoftBank-backed Unacademy invested ₹159.9 crore (around $20 million) in the company.
Notably, K12 Techno has recently shut its animation division for “rationalising," and laid off 50 employees in the process. It also operates a business-to-business (B2B) vertical, Lets Eduvate, and e-commerce store SparkleBox. Meanwhile, Kedaara Capital has been active throughout this week.
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