Kenro Capital acquires stake in Peak XV-backed K12 Techno for $40 Mn

Venture Capital firm Kenro Capital has made its first investment of $40 million (Rs 340 crore) in K12 Techno Services, owner of Orchids International Schools. This is the third secondary transaction for K12 Techno since September last year.

Kenro is set to acquire a minority stake in K12 Techno through a combination of primary and secondary investments. The deal includes the liquidation of stock held by some employees as well as the provision of growth capital to the education firm. The names of the investors participating in the secondary transaction remain undisclosed.

Entrackr has reached out to K12's founder, Jai Decosta, for further details.

Launched by former Peak XV Partners Managing Director Piyush Gupta, Kenro Capital recently announced its maiden fund in November. The firm will focus on secondary transactions and provide liquidity to companies and investors before they are ready to go for public listing.

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 company plans to add 8-12 Orchids schools every year and 100-150 schools under Eduvate on a year-over-year basis.

K12 Techno Services’ revenue from operations rose to Rs 429.2 crore in the fiscal year ending March 2024, from Rs 358.3 crore in FY23. During the last fiscal year, its losses shrank by 75% to Rs 9.5 crore, while it also achieved a positive EBITDA of Rs 80.37 crore in the same period.

Last year, Kedaara invested in the Bengaluru-based company to provide a partial exit to Peak XV. In May this year, Venturi Partners acquired a $27 million stake in K12 Techno from Navneet Learning LLP, a subsidiary of Navneet Education Limited.