Hyderabad: Private equity capital firms are now focusing on education segment and the most attractive destination seems to be Andhra Pradesh again. After People Combine, promoters of Oakridge and Vikas schools, this time Gowtham School’s chain got huge funding. Sequoia Capital and Song Advisors jointly invested around Rs. 70 crores (15 million dollars) in a consolidated entity of the promoter group named as K12 Techno Services Pvt Ltd. This groups runs around 60 schools under Gowtham Model School brand.
According to M. Venkatanarayana, Chairman, K12 Techno Services, The group is planning to increase the total number of schools to 120 in next 3 years. While Gowtham Model is target middle and upper middle class segment, the group’s other venture is Orchids International School, which caters high end schools category.
“Our company offers curriculum development, infrastructure development, pre-school management, teacher training and marketing solutions with a special focus on development of communication skills,” Mr Venkataramana said.
Following the investment, K P Balaraj, Managing Director, Sequoia Capital, Ravishankar GV Principal, Sequoia and Vishal Vasisth of Song Advisors, joined K12 Techno board.
Mr Balaraj, who was also present at the press conference, said Sequoia capital already invested in two companies serving education sector. “Our investment into K12 Techno is the third one in education sector which offers huge potential for growth in the country,” he said.
According to him, Sequoia invested $800 million in 50 companies in India. “Most of our investments are in the service sector including IT, healthcare and education and finance services. We have invested in seven companies in Andhra Pradesh,” he said.
Replying to a query, he said Sequoia would not exit from SKS Microfinance in which it had 20 per cent stake. “Post IPO, our stake came down to 20 per cent from 26 per cent, but we have no immediate plans to exit from it,” he said.