Unacademy is all set to invest in the K-12 Education segment
India’s major ed-tech player Unacedmy in the conversation to buy a significant stake in Sequoia Capital-backed K12 Techno Services, which operates the Orchids International chain of schools. If the deal occurs, it will become the first such bet in Indian by an ed-tech startup on the ground level.
The talks are on for an investment of around $25-30 million by Unacademy... it's going to become a bigger transaction. The discussions are currently in final stages...,” said one among the persons cited earlier.
Uncademy plans to start offering in the K-12 education, which is currently dominated by Byju’s.
K12 Techno Services, founded in 2010, is a school management company that provides academic support, services and technology solutions to 37 schools in India across six cities. In 2016, the promoters exited the corporate and it had been acquired by Sequoia Capital India, which now holds a 64% stake, while Navneet Learning LLP owns the remaining 36%, consistent with a Care Rating handout from March 2021.
Uncademy announced on Monday that Rheo TV, a live streaming platform for gamers is going to be acquired.
Sofina will invest alongside Unacademy in K12, and therefore the current management will still own a minority stake and run the business, said three people conscious of the event. “If the offer is compelling, a full sale can't be ruled out,” the person added.