Bengaluru-based edtech company Educational Initiatives has raised ₹172 crores ($25 million) from an India focused private equity firm Gaja Capital. This investment marks its eighth from its third fund. The details of the transaction are yet to be disclosed.
According to the sources, the deal is anticipated to be a mix of primary and secondary components. Gaja Capital is expected to grab a significant minority stake in the edtech company.
Infused with fresh funds, the company will be looking to strengthen its technology platform, along with expanding its product line and expanding into new markets including the US.
Talking about the investment, Gopal Jain, managing partner, Gaja Capital, said, “Education is core to our investment strategy and we are long-term believers in the K-12 opportunity in India. Education is poised for its ‘cure moment’. The answer to improved learning outcomes is more a Google Maps of education than an Amazon or Netflix approach.”
Educational Initiatives was founded by IIM-A alumni including Srini Raghavan, Sridhar Rajagopalan, Sudhir Ghodke, and Venkat Krishnan in 2001. It focuses on enhancing education among children using personalized and adaptive learning approaches.
The company uses its flagship programs ASSET (Assessment of Scholastic Skills through Educational Testing) and Mindspark to help students in their learning process. ASSET is a scientifically designed, skill-based assessment test, focusing on the understanding of the skills and concepts by the students. Mindspark is an adaptive learning programme using the insights from the ASSET to help students learn in a constructive manner.
Mumbai-based Gaja Capital was founded by a bunch of experienced professionals including Gopal Jain in 2004. This India focused investment firm invests in emerging sectors such as Education, Financial Services and Consumer.
Gaja Capital’s recent investment was made from its ₹1,645.56 crores ($240 million) third fund, Gaja-III. It has a vast portfolio of companies from various sectors. Some of the other significant investments apart from Educational Initiatives, in the education space include SportzVillage, EuroKids and CL Educate.