Venture capital firm Kenro Capital, launched by former Peak XV Partners managing director Piyush Gupta, on Thursday, said it made its maiden investment of $40 million in India’s edtech firm K12 Techno, through a combination of primary and secondary investment.
K12 Techno, which runs the chain of Orchids International Schools, was incorporated in 2010 and provides full-stack education-related services to over 800 private educational institutions with more than 3,00,000 students enrolled across these institutions in India under multiple brands.
Earlier this year, Venturi Partners, a growth equity firm specialising in consumer investments across India and Southeast Asia, purchased a stake worth $27 million in K12 Techno from Navneet Learning LLP, a subsidiary of Navneet Education.
In September 2023, K12 Techno secured undisclosed funding from private equity firm Kedaara Capital, which also provided a partial exit for Peak XV Partners.
The Indian edtech sector, which looked promising and witnessed massive growth during COVID-19, has now been hit by the double whammy of a funding winter and rising costs amid waning demand for online education.
Kenro’s investment comes a month after former Peak XV Partners managing director Piyush Gupta launched the firm, which will buy secondhand stakes in late-stage Indian and Southeast Asian startups.
Kenro is looking to invest in minority positions in growth companies that have achieved revenue scale, are profitable or nearing profitability, and have the potential to go public within 2-3 years after its investment. Its ticket size will range around $20-30 million, but it could underwrite bigger deals with co-investments.
Around 60-70% of Kenro’s first fund will, however, be directed to India, one of Asia’s most vibrant IPO markets this year, Gupta had told DealStreetAsia in an interaction in November.
