ASK Pravi PE Acquires Educomp's Stake In Gateforum
by Ahemad Shaikh
ASK Pravi Private Equity Opportunities Fund has acquired Educomp Solutions' 55.4% stake in engineering exam training company Gateforum Educational Services Private Limited for an undisclosed amount.
In February 2011, Educomp which is undergoing a debt restructuring had picked up a majority stake in the test preparation company through Educomp Online Supplemental Service Limited.
With a presence in more than 65 cities Gateforum through a mix of own and franchisee centres, offers classroom programmes, computer-based tutorials, distance-learning programmes, an all-India test series and online test series. It had recently launched pre-loaded tablet for the aspirants of Graduate Aptitude Test in Engineering (GATE).
Last year Educomp had its 50% stake in IndiaCan to JV partner Pearson for an undisclosed amount. Also it exited its entire 50% shareholding in Eurokids International Limited to a group of financial investors led by GPE India.
This would be third investment for ASK Pravi which focuses on investments in lower mid-market companies. Its previous two investments were in Hyderabad-based hospital chain Omni Hospitals and Indian Clothing League, a kids wear company.
ASK Pravi Capital Advisors Private Limited, a JV between ASK Group and Pravi Capital, is the Investment Manager for ASK Pravi Private Equity Opportunities Fund.
The tutorial business is expected to grow to INR.756.29 Bn in 2014-15 from INR 401.87 Bn in 2010-11.
Recently in this space:
Mumbai based e-learing portal, Toppr had raised $2 Mn in seed round from early stage investors SAIF Partners and Helion Ventures.
Mumbai based Embibe, an online test preparation site owned by Indiavidual Learning Pvt Ltd had raised $4 Mn from Kalaari Capital Partners II and newly launched Lightbox Ventures.
Learnpedia Edutech Solutions had raised undisclosed amount of angel investment from Ixora Ventures and a consortium of angels.
Arun Kumar led Strides Arcolab Limited is taking over the India branded generic business of Bafna Pharmaceuticals Limited for a cash consideration of INR 481 Mn and balance as 26% stake in the SPV to which the business is transferred.
UTI Ventures Funds Management Company Private Limited, the private equity investment subsidiary of UTI Asset Management Co Pvt Ltd, has sold its stake in Ascent Capital Pvt Ltd to the management of the firm, which is headed by Raja Kumar.