Mid-market focused private equity firm, Gaja Capital has made an investment of $25 million in Educational Initiatives, India’s largest technology enabled assessments and adaptive learning company. Gaja Capital has made this investment from its third fund— $240 million Gaja III.
Educational Initiatives is expected to use the funding to further expand its product portfolio, build its technology platforms, and enter new markets, including the US.
Founded in 2001 by Srini Raghavan, Sridhar Rajagopalan, Sudhir Ghodke, and Venkat Krishnan, EI offers schools products and solutions based on deep pedagogical research. Its flagship school assessment, ASSET, is taken by more than 3,80,000 students each year in India and overseas. Its flagship learning product, Mindspark, is a computer based, adaptive learning solution widely used by teachers and parents to help students learn Mathematics and English. EI has worked with more than 3,000 schools and 14 million students to improve their learning outcomes.
“Building on our core strengths of diagnostic assessments and adaptive learning, we at EI are working to define each child’s learning path and aligning it with her education goals and career aspirations using state-of-the-art machine learning and artificial intelligence tools. The business acumen and expertise that Gaja Capital brings to our partnership will help us achieve our goals faster and with greater certainty. I would also like to mention Equirus who acted as our advisor on this transaction,” said Srini Raghavan, Chief Executive Officer, EI.
“Education is central to our investment strategy and we are long-term believers in the K12 opportunity in India. There are several companies getting funded in Ed-Tech in India and globally. However, it is increasingly clear that the answer to improved learning outcomes is not the Amazon or Netflix of education but a solution that works more like Google maps. A solution that ascertains where you are, where you want to go, and gives you the optimal path and tools to get there. EI is well placed to deliver on this promise,” said Gopal Jain, Managing Partner, Gaja Capital.
Gaja Capital had earlier invested in SportzVillage, EuroKids and CL Educate. It also made two exits recently from firms such as TeamLease and RBL Bank, in April and June, respectively. Both investments were made from its second fund — the $180 million Gaja-II.
Other significant players operating in the edtech space are BYJU’S, Toppr, Embibe, NeoStencil, Unacademy, and Englishleap, among others.