Kenro Capital, a venture capital firm, has entered the Indian education sector with its debut investment of $40 million (approximately Rs 340 crore) in K12 Techno Services, the organization behind Orchids International Schools.
This marks the third major secondary transaction for K12 Techno in just over a year, highlighting its rapid growth trajectory in the education sector.
The deal sees Kenro Capital acquiring a minority stake in K12 Techno through a blend of primary and secondary investments. This includes offering liquidity to employees by liquidating their stock and injecting fresh growth capital into the business. Prominent existing investors such as Sofina and Peak XV Partners are expected to divest part of their holdings in this strategic transaction.
Kenro Capital, established by Piyush Gupta—former Managing Director of Peak XV Partners—officially launched its first fund in November. The firm specializes in secondary market transactions, catering to companies and investors looking for liquidity ahead of a public listing.
K12 Techno Services operates over 90 Orchids International School branches nationwide and oversees six additional verticals. These include Sparklebox, an e-commerce platform for educational activity kits, and Eduvate, a service provider that offers tailored solutions for school operations and curriculum development.
The company has ambitious plans to grow its footprint by adding 8-12 Orchids schools and onboarding 100-150 schools under Eduvate each year. With a vision to transform education in India, K12 Techno is leveraging its multi-pronged approach to cater to both operational excellence and curriculum innovation.
K12 Techno’s operational revenue reached Rs 429.2 crore for the fiscal year ending March 2024, a significant increase from Rs 358.3 crore in FY23. The company also achieved a noteworthy turnaround, cutting its losses by 75% to Rs 9.5 crore and reporting a positive EBITDA of Rs 80.37 crore during the same period.
This latest investment follows a series of high-profile transactions for K12 Techno. In 2023, Kedaara Capital infused funds into the Bengaluru-based company, enabling Peak XV to partially exit. Additionally, in May 2024, Venturi Partners acquired a $27 million stake in the company from Navneet Learning LLP, a division of Navneet Education Limited.
Kenro’s investment underscores the potential of K12 Techno as a leader in the Indian education ecosystem. By diversifying its offerings and maintaining strong financial growth, the company is well-positioned to make a meaningful impact in both mainstream and specialized educational services.
Kenro Capital’s decision to back K12 Techno reflects a broader trend of strategic investments in India’s burgeoning education sector, as stakeholders seek to redefine learning experiences for the next generation.
