Kedaara backs India's K12 Techno Services, Peak XV part-exits

It is the second deal in a matter of days in which Kedaara has made a minority investment comprising primary and secondary shares. The firm previously agreed to invest USD 229m into a Series D round for B2B financial data analysis platform Perfois. The identities of the exiting investors were not disclosed, but Bessemer Venture Partners and Warburg Pincus said they would retain stakes in the business.

Peak XV backed K12 Techno as early as 2010, participating in a INR 700m (USD 15m) round alongside Song Investment Advisors. It re-upped the following year, putting in INR 250m. Listed publisher Navneet Education invested INR 450m in K12 Techno later in 2011 and then Kaizen Private Equity made a commitment of undisclosed size in 2016, according to AVCJ Research.

Founded in 2010, the company provides a combination of educational content, technology, and support services to educational institutions. It has more than 900 customers, which in turn serve over 300,000 students in the K-12 education space. Compound annual revenue growth over the past five years has exceeded 40%.

"Education is the cornerstone of any society’s progress. India has over 260m students enrolled in the K-12 segment, that aspire for accessible, high-quality holistic education,” said Sunish Sharma, a founder and managing partner at Kedaara, and Anant Gupta, a managing director at the firm, said in a statement.

“K12 Techno has done tremendous work to help schools bridge this gap by leveraging technology and process orientation. We are excited to partner with Jai and the K12 Techno team to help them accelerate their growth and further their goal of providing world-class holistic education services across India at affordable price points.”

The private equity firm will work with management, Peak XV, and Navneet to augment K12 Techno’s product offering. G.V. Ravishankar, a managing director at Peak XV, said that Kedaara’s arrival means K12 Techno will be “well-funded and strengthened in its mission to build an enduring business.”

Kedaara is currently deploying its third India fund, which closed on just under USD 1.1bn in 2021. Recent deal flow has largely focused on healthcare, with the firm backing medico-aesthetic dermatology services Oliva Skin & Hair Clinic, fertility treatment business Oasis Fertility, and optometry chain ASG Eye Hospital.

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• Topics
• South Asia
• Consumer
• Technology
• Expansion
• Trade sale
• India
• Kedaara Capital
• Peak XV Partners
• Education
• Growth capital