With the investment, the VC firm has picked up 5.12% stake from listed publishing firm Navneet Education's subsidiary Navneet Learning LLP in the startup
In a BSE filing, Navneet Education said that its subsidiary has invested INR 118.59 Cr ($14.2 Mn) in the startup till date
With the investment, Venturi Partners joins the likes of Peak XV Partners, Kedaara Capital, Sofina Ventures, and Navneet Education Limited subsidiary at the captable of the startup
Venturi Partners, a consumer sector-focused fund which makes investments across India and Southeast Asia, has bought 5.12% stake in edtech startup K12 Techno Services for $27 Mn (INR 225.18 Cr).
Venturi Partners made the purchase from Navneet Learning LLP, a subsidiary of Navneet Education Ltd. In a stock exchange filing Navneet Education said that Navneet Learning LLP has invested a total of INR 118.59 Cr ($14.2 Mn) in the startup till date.
“This decision to partially divest our stake aligns with our long-term strategic vision and allows us to focus our resources on core business objectives while unlocking value for our stakeholders. By reallocating resources, we’re preparing ourselves to be more agile and responsive in a changing market. As we embark on this journey, we remain committed to driving sustainable growth and delivering shareholder value,” the company said in the exchange filing.
EY acted as the exclusive financial advisor on this transaction.
With this investment, Venturi Partners joins the likes of Peak XV Partners, Kedaara Capital, Sofina Ventures and Navneet Learning LLP at K12 Techno Services’ captable. It is pertinent to note that Peak XV Partners also made a partial exit from the K12 Techno back in September 2023 when it netted an undisclosed investment from Kedaara Capital.
This is the second secondary round in the startup in the last eight months.
The Bengaluru-based edtech startup, which was launched in 2010 by Venkata Narayana, offers curriculum-based education to schools by leveraging technology. It provides audio-visual content that covers the K-12 curriculum.
K12 Techno claims to have 3 Lakh students enrolled across these 800 private educational institutions to which it provides full stack education-related services. It also claims to have seen its revenue grow at a CAGR of 40% over the last 5 years.
“This collaboration will propel us closer to our mission of shaping a brighter future through holistic learning experiences. Our commitment extends beyond academic excellence, aiming to cultivate empathetic and skilled individuals prepared to make a positive impact. Leveraging technology alongside bespoke learning methodologies crafted for the Indian landscape, we aim to scale our impact and elevate educational outcomes,” K12 Techno’s Jai Decosta said.
Its new backer, Venturi Partners, has made the investment via its maiden $180 Mn consumer-focused fund. After closing its maiden fund in April 2022, it planned on investing in growth stage startups ranging from Series B to Series D, with a ticket size ranging between $10 and $40 Mn, for a 5-10% equity ownership.
The VC firm focuses on startups in social commerce, e-groceries, quick commerce, edtech and healthtech startups in India and Southeast Asia.
“Venturi’s values are well aligned with K12 Techno’s mission to leverage technology to provide world-class holistic learning and improved outcomes at scale. We look forward to working together with Jai and the team to support K12 Techno in this mission,” Venturi’s founding partner Nicholas Cator said.
The development comes at a time when India’s edtech space is witnessing low traction from investors. The falling investor interest in the space was also evident in Inc42’s Indian Tech Startup Funding Report 2023, which highlighted that edtech startups could only secure a mere $283 Mn in 2023 compared to $2.4 Bn in 2022, registering a massive 88% year-on-year (YoY) decline. Also, the number of deals declined 45.91% YoY to 139 from 257 in 2022.
