Sequoia India eyes $50 million investment in K12 despite market slump • TechCrunch
Sequoia India is in advanced stages of deliberations to invest more than $50 million in K12 Techno Services, a start-up that provides a range of services to educational institutions and also runs its own chain of schools, and is doubling down with a company it backed for the first time in a decade, two sources familiar with the matter told. TechCrunch.
One source said K12 Techno Services – which has raised more than $75 million in previous rounds, according to Tracxn – has also partnered with TPG and Accel in recent weeks but has decided to go ahead with current backer Sequoia India.
The tour has not been closed, so the terms of the investment may change, the sources warned, requesting anonymity for sharing non-public information. It’s unclear if anyone other than Sequoia is also investing in the round.
K12 Techno Services Orchids – Chain of International Schools operates in more than twenty cities in India. It runs over 90 schools where it teaches a range of subjects from robotics to philosophy for the “360 degree development” of the individual. According to its website, Orchids has served more than 75,000 students.
It also offers an integrated curriculum, online class platform, and other school management applications for more than 300 schools through its Let’s Eduvate arm. “Our comprehensive solutions are scalable, adaptable and work effectively for all types of schools. They are effective for various school management activities as designed for the overall growth of students, and therefore of schools,” he describes on his website.
Sparkle Box, another arm of K12, runs an e-commerce store for specially designed activity kits aimed at children.
K12 did not respond to a request for comment on Thursday, while Sequoia India declined to comment.
The deal represents Sequoia’s aggressive and multifaceted approach to India’s edtech market, where more than 300 million students attend school and take competitive college entrance exams. It is one of the early supporters of Byju’s, Unacademy and Doubtnut serving students from kindergarten to those preparing to enter college. It is also an investor in Eruditus, which offers higher education to students in dozens of markets.
Education technology startups in India – and beyond – are among the companies most affected by the ongoing downturn in the market that has reversed many of the gains made in the 13-year long bull run. The education technology industry has declined in the South Asian market Nearly 5,000 jobs this year.