IFC to invest $7m in VC-backed CL Educate

IFC's investment will support CL Educate's operations across India, with the goal of increasing the organization's reach among Indian students and providing employment opportunities, according to a filing. The deal is expected to close within the next month.

CL Educate manages the test preparation service Career Launcher, a chain of primary schools, a publishing division, and vocational training programs. It claims to serve 75,000 students directly, with another one million each year using its publications and other materials.

IFC has made a number of investments in India's education sector, in pursuit of its development goals. In addition to supporting education-focused GPs, including Gaja in 2013 and Lighthouse Funds this year, the firm has made several direct investments, supporting education-focused non-banking financial company Avanse Financial Services in 2013 and joining online education provider Coursera's Series C round earlier this year.

Gaja Capital owns about 15% of CL Educate, having first invested in 2007. The company had announced plans for an IPO last year in which Gaja would exit. However, those plans were put on hold after CL Educate decided to pursue the acquisition of education start-up Accendere Knowledge Management Services, which would alter its financial position and require an additional infusion of PE capital.

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• Topics
• South Asia
• Support services
• Expansion
• GPs
• India
• IFC
• Gaja Capital Partners
• Education
• Growth capital
• GPs