Ed-tech firm Educational Initiatives bags $25 mn from Gaja Capital

PE Firm Gaja Capital, a major investor in the lower end of the middle market, has funded $25 million (Rs 171 crore) in Ahmedabad-based ed-tech firm Educational Initiatives Pvt. Ltd, a press statement from the company said.

Gaja Capital had been in advanced talks to invest in the company, which uses machine learning and artificial intelligence tools.

“Education is central to our investment strategy and we are long-term believers in the K12 (kindergarten to 12th grade) opportunity in India,” said Gopal Jain, managing partner, Gaja Capital.

“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,” added Jain.

Educational Initiatives develops and offers education assessment and learning products and services for schools in India and overseas.

Equirus Capital the Mumbai-based investment bank acted as the financial adviser to Educational Initiatives for this deal.

Educational Initiatives was launched in 2001 by three post-graduates from the Indian Institute of Management, Ahmedabad: Sridhar Rajagopalan, Sudhir Ghodke and Venkat Krishnan.

Educational Initiatives raised an undisclosed amount in 2008 in its first round from Bengaluru-based Footprint Ventures, Chennai-based IFMR Trust, and Maryland, US-headquartered Novak Biddle Venture Partners if the funding is surveyed.

Ballarpur Industries chairman Gautam Thapar had also invested In the same round in his personal capacity.