Peak XV nets 12 fold gain on K12 Techno after Vitruvian infuses ₹1,159 crore

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Peak XV Partners has clocked nearly a 12 fold return from its partial exit from K12 Techno Services after the company saw a ₹1,159 crore investment from European private equity firm Vitruvian Partners in a mix of primary and secondary transactions, two people familiar with the matter said.

With this transaction, Vitruvian Partners has acquired a near 16% stake in the company. The filings showed that its investment arm - Eko Tanno Pte Ltd infused ₹150 crore as primary capital to fund the company's expansion plans. The remaining amount was used to purchase shares from existing investors, including Peak XV Partners, one of the people cited above said.

The deal values the company at a post-money valuation of about ₹7,100-7,250 crore, marking a sharp jump from its previous funding round, which valued it at about ₹4,721.2 crore, according to the people and documents reviewed by Mint from the ministry of corporate affairs. Vitruvian, Peak XV and K12 Techno declined to comment.

Sequoia Capital India, now known as Peak XV Partners, had infused about ₹60 crore in 2010, making it one of the first investors in the company and had doubled down over the years. Since 2023, the investment firm has shed its stake through a series of secondary transactions.

Mint first reported in December last year that the company was in talks with several private equity funds, including Vitruvian, to raise about $150-200 million.

According to market research firm IMARC Group, India's school market was valued at $54.2 billion in 2024 and is expected to reach $135.6 billion by 2033, growing at a compound annual growth rate (CAGR) of 10.2% during 2025-2033.

K12 Techno competes with Lead School, Classplus and other players in the education technology space, according to online reports.

Founded in 2010 by M. Venkatanarayana and his son M.S.C. Srikanth, K12 Techno operates a diversified education platform spanning school management and early learning. Its flagship business is Orchids The International School. It also runs a school partnership model under K12 Techno, early-learning brands SparkleBox and SparkleBox School, and other verticals such as Plufo and Let's Eduvate.

In 2016, the promoters exited K12 Techno and Sequoia Capital India acquired the company. Sequoia Capital India, now Peak XV Partners Investments, currently owns about 13.3% through its overseas investment vehicles—Sequoia Capital Investment Holdings III and SCI Investment V, one of the people cited above said.

Other investors include Navneet Learning (13.3%), Sofina Ventures (13%), Kenro Capital (6.5%) and Kedaara Capital (23.8%).

K12 Techno has witnessed multiple transactions in recent years. In September 2023, Kedaara invested close to $150 million to acquire a stake from Peak XV, valuing the company at about $450-460 million.

In May 2024, Venturi Partners bought a 5.12% stake for $27 million from Navneet Education, valuing the company at $500-600 million, while Navneet retained a 14-15% stake. Later that year, the company raised $40 million from Kenro Capital at a similar valuation.

Over the years, K12 Techno has expanded to more than 113 educational institutes across 17 major cities and plans to add 10-15 schools annually, according to an ICRA report released in May.

The company reported operating income of ₹523.1 crore in FY26, up from ₹391.9 crore a year earlier. Its losses also narrowed significantly to ₹24.9 crore from ₹57.7 crore in FY25.

Priyamvada is a Mumbai-based business journalist at Mint. She writes about the public and private markets with a key focus on venture capital, private equity, M&As and private credit. Her coverage also spans startups and emerging businesses.<br><br>Over the last two years, she has uncovered some of the largest deals and interviewed important decision-makers from India’s investment ecosystem. She likes to dabble across different formats like long f...