K12 Techno Services, a Bengaluru-based education and technology provider, has raised $40 million (₹340 crore) from Kenro Capital, achieving a valuation of ₹5,000 crore. This funding round marks Kenro Capital’s debut investment since its establishment last month.
Details of the Deal:
- Valuation: The transaction valued K12 Techno at ₹5,000 crore, up from ₹4,000 crore during its last funding round with Kedaara Capital in November 2023.
- Stake Sale: Existing investors Sofina and Peak XV Partners (formerly Sequoia Capital India) partially exited through this deal.
Growth Objectives:
K12 Techno plans to expand its technology-driven services for schools and students across India. The company currently collaborates with over 900 educational institutions, serving more than 350,000 students.
Kenro Capital’s Vision:
Founded by Piyush Gupta, former Managing Director at Peak XV Partners, Kenro Capital focuses on minority investments in growth-stage companies across India and Southeast Asia.
- Investment Strategy: Kenro targets companies with scalable revenue, profitability, and IPO potential within 2-3 years.
- Sector Outlook: Gupta emphasized the transformative growth of India’s education sector, driven by a strong demographic base and increasing demand for quality private education, particularly CBSE-aligned schools.
Future Prospects for K12 Techno:
The company anticipates revenue growth from ₹383 crore in FY23 to ₹450 crore in FY24, propelled by rising demand for its services.
- IPO Plans: CEO Jai Decosta revealed plans for a public offering within the next 3-4 years.
- Sustainable Strategy: K12’s long-term partnerships with schools (spanning 20-30 years) are central to its sustainable growth model, setting it apart in a challenging edtech market.
