Career Point raises Rs 50 cr from Franklin Templeton PE

The Indian education sector is certainly looking to be the flavour of the season for private equity investment firms. In yet another placement, Career Point Infosystems Ltd (CPIL), has raised Rs 50 crore in equity capital from Franklin Templeton Private Equity Strategy (FTPES).

Among India’s leading integrated education solutions provider, Career Point will deploy the funds raised from the private equity portfolio managed by Franklin Templeton Asset Management (I) Pvt Ltd to expand its operations in the country. Mumbai-based o3 Capital was the sole advisor to Career Point for this transaction.

Post this fund raising exercise, Career Point is also expected to mark its foray into secondary and higher education segments. Part of the investments will be directed towards strengthening its existing coaching business where it launched the unique Syncho School (VSAT enabled) and Knowledge Lab offerings.

Pramod Maheshwari, MD, Career Point, said, “This infusion of equity will allow us to make long-term investments for our foray into secondary and higher education.”

Instituted in 1993, by IIT-Delhi graduate Pramod Maheshwari, Career Point has established Kota, as the national preparation hub for engineering entrance aspirants. The integrated education service provider has built a national footprint with over 29 centres across India with an annual student intake of over 24,000 students. It today provides coaching for IITJEE, AIEEE and AIPMT exams.

According to Deepesh Garg, director, o3 Capital, India’s private education spending as estimated in 2007 is around $40 billion. Growing at a compounded annual growth rate (CAGR) of 16% the spending is projected to grow to $70 billion by 2012. “Career Point’s presence in multiple segments including entrance exam coaching, secondary and higher education will help it deliver exponential growth and emerge as a dominant player in private education sector,” said Garg.