K12 Techno Services bags $40M from Kenro Capital

K12 Techno Services, a school education and technology services provider, has bagged $40 million in funding from Kenro Capital, a growth-stage secondary venture capital firm recently founded by Piyush Gupta, the former managing director at Peak XV Partners.

Kenro Capital, in its debut investment, has acquired a minority stake in K12 Techno Services through a mix of primary and secondary funding.

The firm’s investment comprises acquiring a partial stake from a major existing shareholder, purchasing employee stock ownership plans (ESOPs), and making a small primary capital infusion to fuel K12 Techno’s growth.

K12 Techno Services, as the name suggests, operates in the K-12 education segment through its own brand, Orchids The International School, and its curriculum and technology platform. Offering a wide range of services—including content, marketing, software, curriculum, and security—the edtech startup has built a strong presence across schools in India. 

The education company provides its solutions to over 900 institutions across the country, catering to the needs of more than 350,000 students.

“K12 Techno’s scale enables unparalleled advantages in multiple areas of student engagement, teacher recruitment, infrastructure, and cutting-edge IT and curriculum development, distinguishing it from standalone education institutions,” said Piyush Gupta, Founder and Managing Partner of Kenro Capital.

Gupta added that K12 Techno aligns well with Kenro’s strategy of investing in growth-stage companies with significant revenue scale and profitability, primarily through secondary transactions.

In FY24, K12 Techno achieved growth, with revenue from operations increasing to Rs 429.2 crore, up from Rs 358.3 crore in the previous year. The company narrowed its losses by 75% year-on-year to Rs 9.5 crore and recorded a positive EBITDA of Rs 80.4 crore for the fiscal.

EBITDA, or earnings before interest, taxes, depreciation and amortisation, is a measure of core operational efficiency.

“We are thrilled to partner with Kenro Capital, as Piyush and Norbert bring invaluable expertise in preparing companies for public markets and in assessing and executing acquisitions. Their agility in executing this investment demonstrates their alignment with our vision, making them ideal partners at this pivotal stage of our growth journey,” Jai Decosta, CEO, K12 Techno Services, said in a statement.

Backed by prominent investors such as Peak XV Partners, Kedaara Capital, Sofina Ventures, Venturi Partners, and Navneet Learning LLP, K12 Techno Services has expanded its business by catering to the growing post-pandemic demand for its school-related services.

“Parents are increasingly prioritising holistic development, which aligns seamlessly with K12’s focus on academic rigour, extracurricular activities, and affordability, positioning it as a leader in the Indian education space,” remarked Norbert Fernandes, Partner at Kenro Capital.

Back in May, venture capital firm Venturi Partners acquired a stake worth $27 million (Rs 225.18 crore) in K12 Techno Services from Navneet Learning LLP, a subsidiary of Navneet Education Limited.