Sequoia India Eyes $50 Million Investment In K12 Despite Market Slump
Sequoia India is leading the charge by investing over USD 50 million in K12 Techno Services, a start-up that provides a range of services to educational institutions and runs its network of schools. With the initial funding, it will double in ten years. Two sources familiar with the matter then told TechCrunch.
K12 Techno Services, which according to Tracxn has raised more than $75 million in earlier rounds, has held stakes in TPG and Acel in recent weeks but decided to stick with current backer Sequoia India, it said one of the sources.
The round is ongoing, so the investment terms could change, the sources said, speaking on condition of anonymity to share non-public information. It's unclear if anyone besides Sequoia invested in the round.
K12 Techno Services operates Orchid's global network of schools in over two dozen cities across India. It runs more than 90 schools and teaches subjects ranging from robotics and philosophy to "360-degree personal development". According to its website, Orchid has served more than 75,000 students.
Through its Enmar subsidiary, it provides an integrated curriculum, online learning platform and other school management applications to more than 300 schools. “Our comprehensive, customizable and adaptable solutions work effectively for all types of schools. They are effective for overall student development and various school management activities aimed at the school," he explains on his website.
Sparkle Box, another K12 affiliate, has an e-commerce store specifically for kids' activity supplies.
K12 did not respond to a request for comment on Thursday, while Sequoia India declined to comment.
The deal represents Sequoia's aggressive and diversified approach to India, where more than 300 million students study and take college entrance exams. He was one of the sponsors of Baiju, Yunadami and Doubt, which caters to kindergarten students in college preparation. He is also an investor in Eruditus, which provides higher education to students in dozens of markets.
Edtech startups in India and beyond have been hit hard by the ongoing market downturns, which have wiped out much of their 13-year gains. The edtech industry in the South Asian market has cut nearly 5,000 jobs this year.
