*Radcliffe Foundation* is talking to PE players to raise upto Rs 300 Cr for expanding its operations in the K-12 segment. The company intends to raise the funds in two tranches of Rs 150 Cr each.
Radcliffe Foundation is an arm of Rai Foundation which runs schools for technical education. Radcliffe presently operates 18 schools across the country. Most of these schools are in the Tier I cities and Radlciffe intends to expand to Tier II cities after the capital infusion. It plans to open schools in Bhopal, Hyderabad, Kolkata, Kochi and Raipur. It is also talking to Unitech and Omaxe to lease out buildings in the townships for schools. All the schools are expected to be up and functional by 2014-2015. *Edelweiss Capital* is advising Radcliffe on the deal. Transaction Note *K-12 Education In India* Various industry houses including *Essel Group* have earmarked investments for expanding their presence in the education space. The Essel Group intends to invest upto Rs 500 Cr for setting up 300 schools across the country. The schools will be a combination of group-owned and franchise models. *Educomp Solutions* also plans to setup 100 schools and Indus World which operates 12 schools across India also plans to take up the number to 100 by 2014. As the schools in India are a not -for-profit pursuit by law and are required to be set up by charitable public trusts, it could be very difficult for these companies to attract VC and PE investment in this domain. As per the research report published in Jan'09, by IDFC SSKI, only $180 Mn of PE investment has gone in the formal education sector, which includes playschools, coaching classes, online tutoring and digital content for schools, how ever mainstream education has attrated hardly any PE/VC investment. In 2010 also there have been investments in the education sector but mainly in test preparation firms. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
