Singapore-based private equity player Venturi Partners has entered a definitive agreement with Navneet Learning LLP to acquire a 5.12% stake in K12 Techno Services Pvt. Ltd for Rs 225.2 crore (around $27 million as per current rates).
The deal values K12 Techno – the operator of Orchids International Schools – at around Rs 4,398 crore (nearly $527 million), as per estimates.
Navneet Learning, owned by listed player Navneet Education, had put in nearly Rs 119 crore in K12 across multiple rounds.
Based on the current valuation, the firm is sitting on a 7x return on its investment. It has already realised nearly 1.9x of its investment. It will continue to hold nearly 14.35% stake in the company, worth nearly $76 million.
The development comes eight months after the education company received an investment from homegrown PE player Kedaara Capital in a secondary transaction.
“This decision to partially divest our stake aligns with our long-term strategic vision and allows us to focus our resources on core objectives while unlocking value for our stakeholders. By reallocating resources, we're preparing ourselves to be agile and responsive in a changing market,” said Gnanesh Gala, managing director, Navneet Education in a company statement.
K12 Techno Services was incorporated in March 2010 by M Venkatanarayana and his son MSC Srikanth to provide education services to state board schools under the name Sri Gowtham Academy of General and Technical Education (SGATE).
It also operates business-to- business (B2B) vertical Lets Eduvate, and e-commerce store SparkleBox.
The company was loss-making 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, K12 Techno Services provides management services to ICSE/CBSE curriculum schools from kindergarten to X-XII, based in large metros like Bengaluru and Mumbai under the brand name, ‘Orchids, The International School’.
The company currently provides full stack education, content, and technology services to more than 900 educational institutions across the country through a combination of its own brand and a curriculum and technology platform.
