Kedaara Cap buys significant minority stake in Navneet Education sub-brand K-12 Techno

(Representative image)

Kedaara Capital has invested in ed-tech firm Navneet Education's investee company K-12 Techno Service for a significant minority stake, the company announced on September 14.

Kedaara will work with Peak XV Partners (formerly known as Sequoia Capital India), Navneet Education and Sofina Ventures.

This investment deal was first reported by CNBC-TV18 on August 29, where it said that Kedaara may invest $130 million (approximately Rs 1,000 crore) in K-12 Techno Services. The report, citing sources, had also mentioned that it would likely buy-out an existing investor and infuse fresh capital.

As per the development, this investment will also provide a partial exit to Peak XV Partners (formerly known as Sequoia Capital India).

Speaking on the deal, Jai Decosta, CEO, K12 Techno Services said, “We are delighted to welcome Kedaara as a valued partner for the next phase of our growth, as it symbolizes a convergence of values and aspirations, and will help us continue to deliver on our mission to make an impact in the K-12 space in India.”

Sunish Sharma, Founder and Managing Partner and Anant Gupta, Managing Director of Kedaara Capital, said, "We are excited to partner with Jai and the K12 Techno team to help them accelerate their growth and further their goal of providing world-class holistic education services across India at affordable price points.”

Moreover, GV Ravishankar, MD, Peak XV, added, “...With Kedaara coming in, we believe the company will be well-funded and strengthened in its mission to build an enduring business.” added GV Ravishankar, MD, Peak XV.

Navneet Education owns close to 22 percent stake in K-12 Techno Services ad per the company's last investor presentation. Further a sharp upward revision in the valuation of K-12 Techno Services will benefit the company.

Meanwhile, K-12 Techno provides elementary education to students from Kindergarten to class 12.