Sequoia India is in advanced talks to invest more than $50 million in K12 Techno Services, a startup that offers a range of services to educational institutions and also has its own chain of schools, doubling the size of a company it first launched. more than a decade ago, two sources familiar with the matter told gotechbusiness.com.
K12 Techno Services – which has raised more than $75 million in previous rounds, according to Tracxn – has also been in touch with TPG and Accel in recent weeks, but has decided to continue with existing lender Sequoia India, one of the sources said.
The round is not yet closed, so terms of the investment could change, sources warn, who ask for anonymity to share non-public information. It’s unclear if anyone other than Sequoia is also investing in the round.
K12 Techno Services runs Orchids – The International School chain in more than two dozen cities in India. It operates more than 90 schools where it teaches a range of subjects from robotics to philosophy to an individual’s ‘360-degree development’. Orchids has served more than 75,000 students, according to its website.
It also provides an integrated curriculum, online lesson platform, and other school management applications to more than 300 schools through its Let’s Eduvate branch. “Our comprehensive solutions are scalable and 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, i.e. for schools,” it describes on its website.
Sparkle Box, another branch of K12, runs an e-commerce store for custom activity kits for kids.
K12 did not respond to a request for comment on Thursday, while Sequoia India declined to comment.
The deal represents Sequoia’s aggressive and multi-faceted approach to tackling the edtech market in India, where more than 300 million students attend school and participate in competitive college entrance exams. It is one of the first donors to Byju’s, Unacademy and Doubtnut serving students from kindergarten to those preparing for college. It is also an investor in Eruditus, which provides higher education to students in dozens of markets.
Edtech startups in India – and beyond – have been hit hardest by the ongoing market downturn that has reversed much of the gains made in the 13-year bull run. The edtech industry in the South Asian market has cut nearly 5,000 jobs this year.