Sequoia India plans to invest $50 million in K12 despite the market downturn

• ByStartupStory     |    October 25, 2022

Sequoia India is considering an investment of more than $50 million in K12 Techno Services, a startup that provides a variety of services to educational institutions and also manages its own chain of schools, according to two sources familiar with the situation who spoke to TechCrunch. Sequoia India previously backed the company more than ten years ago. 

K12 Techno Services, which, according to Tracxn, has raised over $75 million in prior rounds, also had discussions with TPG and Accel recently but ultimately decided to proceed with its current sponsor Sequoia India, one of the people said. 

The terms of the investment could change, sources warned, requesting anonymity in order to share nonpublic information. The round hasn’t closed.It’s unclear if any additional investors, except Sequoia, are part of the round. 

In more than a dozen Indian locations, K12 Techno Services manages the chain of Orchids – The International Schools. It runs over 90 schools where it teaches a variety of disciplines for a person’s “360-degree growth,” from robotics to philosophy. According to their website, Orchids has assisted over 75,000 pupils. 

Through its subsidiary dubbed Let’s Eduvate, it also provides integrated curriculum, a platform for online classrooms, and other school management applications to over 300 schools. “All types of schools can benefit from the scalability and adaptability of our all-inclusive solutions. According to their website, “They are effective for various school management activities as intended for the general growth of children, hence for schools.

A subsidiary of K12 called Sparkle Box has an online store where kids’ activity kits can be ordered just for them. Sequoia India declined to comment, but K12 didn’t react to a request for comment on Thursday. 

The agreement demonstrates Sequoia’s determined and comprehensive strategy for taking on the Indian edtech sector, where over 300 million youngsters attend school and take demanding college entrance tests. It was one of the first sponsors of Byju’s, Unacademy, and Doubtnut, three organisations that support students from kindergarten to those getting ready for college. It also invests in Eruditus, a company that provides higher education to students across numerous markets.

The recent market collapse, which has mostly undone the profits earned during the 13-year bull run, has had a particularly negative effect on edtech businesses in India and elsewhere. Nearly 5,000 jobs have been lost in the South Asian edtech business this year.

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