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BW Businessworld

Investors Get Ready For A New Course

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Private equity investors and venture capital firms will make Rs 4,500 crore of new investments in education by 2014, according to a report by the Associated Chambers of Commerce and Industry (Assocham). "Around 55 per cent of VCs and PE firms in India consider education  an attractive sector," according to Assocham.

Manipal Education received Rs 200 crore each from Narayana Murthy's VC firm Catamaran and Azim Premji, during last 18 months. And Fidelity Growth Partners India recently invested $15 million by acquiring a minor stake in Mind Shaper Technologies, which is branded Classteacher Learning Systems, and provides solutions for digital classrooms, language labs and Web-based learning. It plans to utilise the funds to expand its sales consultants base.

"Education has been a high interest area as the demand for quality education whether K-12, higher or vocational education has grown," says chief executive Rohit Pande of Classteacher Learning Systems. "Also with schools looking at technology to drive change in the system, there is a huge demand for education service providers in the country."

Though investors are enthusiastic about the growth in the sector, policy constraints, and the lack of clarity on current and future policy, licensing higher education, etc., are seen as major hurdles that could restrain the funding.
(This story was published in Businessworld Issue Dated 01-08-2011)