Aditya Birla PE, Omidyar Network to invest $7.6M in Tree House
Pre-school management company Tree House Education & Accessories Ltd is raising a little over Rs 41 crore ($7.6 million) from Aditya Birla Capital Advisors, the private equity arm of the Aditya Birla Financial Services Group, and existing investor Omidyar Network. Aditya Birla Capital is leading the round by investing Rs 31.16 crore for 3.71 per cent stake post-dilution through its Sunrise Fund. Omidyar will invest another Rs 10 crore in the firm, raising its stake to 3.55 per cent from 2.61 per cent.
Promoters of Tree House will also invest another Rs 40 crore through warrants as a part of this transaction. The company will organize an extra-ordinary general meeting (EGM) on December 27, 2012 to seek shareholders nod for the same.
Antique Capital Markets acted as an advisor to the company for this transaction.
The investment comes weeks after Unilazer Ventures, the family office set up by Walt Disney India chief Ronnie Screwvala, acquired 2.34 per cent stake in Tree House for Rs 17.2 crore ($3.2 million). Tree House counts Matrix Partners and Silicon Valley-based venture capital firm Foundation Capital as its early investors.
In 2012, there have been 33 deals worth $130 million in education services space till date, compared to 27 deals worth $172 million in 2011, according to VCCEdge, the data research platform of VCCircle.
Shares of Tree House closed at Rs 236.05 a unit, up 1.14 per cent on Monday, giving it a market capitalisation of Rs 805 crore. The shares will be allotted to new investors at Rs 222.6 per unit.
For H1 FY13, the company reported 65 per cent increase in income to Rs 55.8 crore with net profit up 71 per cent to Rs 17.95 crore, compared to the same period last year. As of September 2012, Tree House had a network of 309 pre-schools across 37 cities while its self-operated schools stand at 243 or 79 per cent of the total number of facilities. In addition, the company also operates 21 K-12 schools across three states.
Tree House, which raised around Rs 112 crore in its public issue last year, is a six-year-old firm founded by the Bhatia couple – Rajesh and Geeta. It started operations in 2007 and raised the first round of funding from Matrix Partners, which holds 26.41 per cent stake in the company and is sitting on over 3x unrealised gains on the investment.
Tree House has recently acquired the pre-school business of MT Educare, a Mumbai-based K-12 tutoring and test preparation firm, for an undisclosed amount. The deal gave it six company-operated centres located in Mumbai and Pune.
Aditya Birla Capital, which manages over Rs 1,100 crore, has approximately Rs 300 crore for its Sunrise Fund which targets emerging sectors in the Indian economy. The fund made its debut by investing Rs 40 crore in SMS Paryavaran, a water and wastewater treatment company, and recently backed fine dining restaurant operator Olive Bar and Kitchen.
(Edited by Sanghamitra Mandal)
Tree House Education and Accessories Ltd. is engaged in providing education services. It operates pre-school and nursery facilities, vacation camps, hobby classes, day care facilities and teacher training courses. The firm also provides educational services to K-12 schools which include, designing curriculum and providing teaching aids, supplying methods for imparting education, organizing extra-curricular activities for students and teacher training. The company was founded in 2006 and is based in Mumbai, Maharashtra.
- PE-backed Tree House Education to merge with Zee Learn
- Tree House may merge with Zee Learn as founders part-exit
- What ails India's top self-run pre-school chain Tree House?
- Tree House shuffles top deck, to add 150 pre-schools this year
- Matrix Partners part-exits Tree House Education with over five-fold returns
- Pre-school chain Tree House to sell land, building at Vadodara for $8.5M
Omidyar Network India Advisors Pvt. Ltd. is a private equity and venture capital firm with $879 million under management. It provides early stage and debt capital to companies operating in Asia, Africa, United States, Latin America and Europe. The firm seeks to invest consumer internet and mobile, education, financial inclusion, governance and citizen engagement and property rights. It typically invests between $1 million and $10 million in its portfolio companies as an initial investment. The company was founded in 2004 and is based in Mumbai, Maharashtra with additional offices at London, Washington, Johannesburg and Silicon Valley.
- Roopa Kudva of Omidyar Network to chair the jury of VCCircle Awards 2016
- Omidyar, Zephyr Peacock invest in Swarna Pragati Housing
- Social impact businesses future of VC in emerging markets: Omidyar’s Matt Bannick
- Home services marketplace Zimmber raises around $2M from IDG, Omidyar, Sherpalo &...
- RailYatri raises pre-Series A round of funding from Helion, Omidyar & others
- Omidyar Network ropes in Roopa Kudva from CRISIL as partner & MD for India
Aditya Birla Private Equity Sunrise Fund is a $65 million private equity fund managed by Aditya Birla Capital Advisors Pvt. Ltd. It provides early-stage capital to companies operating in India. The fund seeks to invest in education, food and beverages, healthcare and technology sectors. It typically invests between $5 million and $10 million in its portfolio companies.
- Aditya Birla PE invests in fashion garments firm Creative Lifestyle
- Monte Carlo IPO Day 1: Aditya Birla PE comes as an anchor investor
- TVS Capital, Aditya Birla PE come in as anchor investors in Wonderla
- Trimax scraps proposed India IPO, may list overseas to give exit to PE firms
- Tree House Education plans to sell land, buildings of four schools