Edtech startup K12 Techno Services has raised an undisclosed amount of funding from Kedaara Capital.
With this investment, Peak XV Partners (previously Sequoia Capital India) will be partially exiting the company, the startup said in a statement.
Launched in 2010 by Venkata Narayana, K12 Techno is a Bengaluru-based edtech startup that offers curriculum-based education to schools by leveraging technology. The startup provides audio-visual content that covers the K-12 curriculum. It operates across Hyderabad, Chennai, Mumbai, Bengaluru, Gurugram, Kolkata and Pune.
K12 Techno claims to serve over 900 educational institutions and schools with over 3,00,000 students.
The startup claims to have seen its revenue grow at a CAGR of 40% over the last 5 years. Besides Peak XV, it is backed by the likes of Navneet Education Limited and Sofina Ventures. It competes with the likes of LEAD School and Educomp.
Commenting on the investment, Kedaara Capital’s founder and managing partner Sunish Sharma and MD Anant Gupta said, “K12 Techno has done tremendous work to help schools bridge this gap by leveraging technology and process orientation. We are excited to partner with Jai Costo (K12 Techno CEO) and the K12 Techno team to help them accelerate their growth and further their goal of providing world-class holistic education services across India at affordable price points.”
The development comes at a time when the edtech segment has been among the worst hit sectors by the ongoing funding winter. This has resulted in a number of edtech startups resorting to layoffs to cut costs and many even shutting down.
As per Inc42’s layoff tracker, 22 edtech startups, including unicorns BYJU’S, Unacademy, upGrad, have laid off over 9,800 employees since 2022. Most recently, Peak XV-backed Cuemath fired 100 employees last month to cut costs.
Despite the downturn, founders and investors are looking to cash in on the burgeoning edtech market. According to Inc42’s analysis, the Indian edtech market is estimated to grow to $29 Bn, at a CAGR of 24% during the forecast period of 2025-2030. With 7 unicorns in the sector, the total funds raised by the industry since 2014 stands at $11 Bn.
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