“Education and Housing are core needs of India’s emerging consumers. This partnership between two sector leaders will leverage complementary strengths to help address the huge and immediate unmet demand for K12 education from India’s quality seeking consumers," said Gopal Jain, Managing Partner of Gaja Capital.
There have been several investments in the school managements business since last year. Reliance Equity Advisors, the PE arm of Anil Ambani's Reliance Capital, invested Rs 100 crore in Pathways World School in its debut deal last year. New Silk Route invested up to $25 million in Hyderabad-based Sri Chaitanya Educational Group, one of the largest network of private schools and junior colleges.
India's K-12 segment is a $20-billion market growing at a compounded annual growth rate (CAGR) of 14%, said a report by education-focused PE firm Kaizen Management Advisors. Factors like large and growing population, inefficient public system and preferences for private schools and colleges is driving this sector.
Education sector has seen investments of $190 million across 23 deals in the calendar year 2010, according to VCCEdge. This compared to 10 deals worth $128 million in the entire calendar year 2009.
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