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Venturi picks up over 5% stake in Peak XV-backed K12 Techno for $27 Mn

EntrackrEntrackr · 1y ago
Venturi picks up over 5% stake in Peak XV-backed K12 Techno for $27 Mn
Medial

Venturi Partners has announced a purchase of a $27 million worth stake in K12 Techno Services from Navneet Learning LLP, subsidiary of Navneet Education Limited. This is the second secondary round in K12 Techno in the last eight months. In a stock exchange filing, Navneet Education Ltd disclosed that it will divest 5.12% stake in K12 Techno against $27 million. It will also retain a 14.35% stake in the firm after this transaction. This roughly valued the Bengaluru-based firm at around $540 million. Investing out of its $180 million maiden fund, Venturi will join K12 Techno’s existing shareholders such as Peak XV Partners, Kedaara Capital, Sofina Ventures, and Navneet Learning LLP, to support the management team led by Jai Decosta, CEO of K12 Techno. For the uninitiated, K12 Techno runs the chain of Orchids International Schools. The 14-year-old company provides full stack education, content, and technology services to more than 900 educational institutions across the country through a combination of its own brand and a curriculum and technology platform. The firm provides management services to ICSE and CBSE curriculum schools from kindergarten to X-XII, based in large metros like Bengaluru, Mumbai and Gurugram under the ‘Orchid’ brand. As per the company, its brand, content and technology has been used by over 300,000 students in the K-12 space in India. It also claimed to have grown at a CAGR of 40% over the last five years. In September, K12 Techno raised investment from Kedaara Capital against a significant minority stake in the company. It also provided a partial exit to Peak XV Partners (formerly known as Sequoia Capital India). Check startup data intelligence platform TheKredible for the complete shareholding pattern. With this, K12 Techno will join Venturi Partners’ portfolio of consumer-focused investments in India and Southeast Asia which includes Livspace, Country Delight, Believe, Pickup Coffee, and DALI. According to TheKredible, the company registered Rs 382 crore in revenue in FY23 with Rs 39 crore loss. The firm expected to close FY24 with Rs 450 crore with EBITDA of nearly Rs 100 crore.

Exclusive: Unacademy in talks to merge with Orchid schools owner K12 Techno

EntrackrEntrackr · 1y ago
Exclusive: Unacademy in talks to merge with Orchid schools owner K12 Techno
Medial

Edtech unicorn Unacademy is in discussion to merge with K12 Techno, which runs the chain of Orchids International Schools, three sources told Entrackr. This would be the first major consolidation in the edtech space which has been witnessing funding drought in the past two years. “The two companies have been discussing the terms of the merger for the last four weeks,” said one of the sources requesting anonymity. “If the merger gets through, both companies will own 50% each in the joint entity.” It’s worth noting that Unacademy made an investment in Orchid School (K12 Techno) three years ago, and Peak XV is a common investor in both companies. Sources assert that Unacademy also wanted to acquire Orchid School in 2021, but the discussions didn’t materialize. Queries sent to Unacademy and Orchid Schools remain unanswered until publication of this story. We will update the story in case they respond. The 14-year-old K12 Techno provides full stack education, content, and technology services to more than 900 educational institutions across the country through a combination of its own brand, and curriculum and technology platform. It provides management services to ICSE and CBSE curriculum schools from kindergarten to class X-XII, based in metros like Bengaluru, Mumbai, Gurugram and many mid-sized cities under the ‘Orchid’ brand. According to startup data intelligence platform TheKredible, K12 Techno registered Rs 382 crore in revenue in FY23 with Rs 39 crore loss. The firm expected to close FY24 with Rs 450 crore with EBITDA of nearly Rs 100 crore. Recently, Venturi Partners purchased a $27 million worth stake in K12 Techno Services from Navneet Learning LLP, subsidiary of Navneet Education Limited. Softbank-backed Unacademy raised its last equity round of $440 million led by Temasek at a valuation of $3.44 billion in August 2021. ​During fiscal year FY23, Unacademy saw a 26% jump in its operating revenue to Rs 907 crore while controlling losses by nearly 40% to Rs 1,004 core. In the beginning of FY24, the company also claimed that it was close to profitability at the group level. The firm is yet to file its audited financial statements for FY24.

K12 Techno Services touches Rs 430 Cr revenue in FY24, turns EBITDA positive

EntrackrEntrackr · 7m ago
K12 Techno Services touches Rs 430 Cr revenue in FY24, turns EBITDA positive
Medial

K12 Techno Services, which runs a school chain under the brand name Orchids, has shown efficient financial performance in the last fiscal. The company reported around 20% year-on-year growth in its operating revenue during FY24, with over a 75% reduction in losses. K12 Techno Services’s revenue from operations rose to Rs 429.2 crore in the fiscal year ending March 2024, from Rs 358.3 crore in FY23, its financial statement filed with the Registrar of Companies shows. Apart from operating over 90 Orchids School branches across the country, K12 Techno Services has six verticals, including Sparklebox, an e-commerce store for activity kits, and Eduvate, which provides custom solutions for school operations and curriculum design. The sale of services accounted for the majority, contributing 58.72% (Rs 252.02 crore) of the revenue, with a modest 7.1% year-over-year growth. However, the sale of products for the Bengaluru-based firm surged by 46.5% to Rs 171.72 crore in FY24, making up 40.01% of the total operating revenue. Including non-operating income of Rs 18.47 crore, K12 Techno Services’ total income grew 17% to Rs 447.67 crore in the last fiscal year. On the expense side, employee benefit expenses remained the largest cost component, rising by 28.2% to Rs 173.38 crore in FY24 and constituting 37.92% of the total expense. The cost of materials grew by 23% to Rs 89.2 crore, while depreciation expenses rose by 64.4% to Rs 58.69 crore. Advertising expenses decreased by 20.5% to Rs 58.86 crore. Despite registering 17% growth in scale, the company’s total expenses grew by 8.5% to Rs 457.2 crore in FY24, up from Rs 421.5 crore in FY23. In the end, K12 Techno Service’s losses shrank 75% to Rs 9.5 crore in FY24 from Rs 38.75 crore in FY23. The firm also achieved a positive EBITDA of Rs 80.37 crore in the last fiscal. Its ROCE and EBITDA margin stood at 1.69% and 17.95%, respectively. On a unit basis, the company spent Rs 1.07 to earn a rupee of operating income in the last fiscal year. The company’s assets rose to Rs 402 crore in FY24 from Rs 312 crore in FY23, while its cash and bank balance at the end of FY24 stood at Rs 174.65 crore.

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