HCL Group, the renowned IT giant, has finalized a deal to acquire a minority stake worth INR 166 Crores ($20 million) in Educational Initiatives (Ei), a prominent education software company. This strategic move involves the purchase of a portion of the stake held by Mumbai-based private equity firm Gaja Capital in Ei.
Shikhar Malhotra, Director of HCL Group, expressed enthusiasm about the investment, stating, “We’re thrilled to invest in Ei… the organization offers a distinctive blend of scalable technology, impactful social initiatives, and sustainable growth.”
Educational Initiatives, founded in 2001 by Srini Raghavan, Sridhar Rajagopalan, Sudhir Ghodke, and Venkat Krishnan, is a leading education research and assessments company. Known for its K-12 assessments and adaptive learning solutions in India, Ei operates on a business-to-business (B2B) model, providing schools with a suite of assessment and adaptive learning products to enhance learning outcomes for both teachers and students.
The Bengaluru-based company has ambitious expansion plans, targeting new markets such as South Africa, Kenya, Ghana, and Saudi Arabia. Currently operational in India, UAE, South Africa, and Singapore, Ei is also exploring potential acquisitions of edtech product companies to further enrich its offerings. The company boasts a user base exceeding one million paid users.
Ei’s Chief Executive, Pranav Kothari, expressed excitement about the collaboration with HCL Group, stating, “I’m excited to welcome HCL Group as investors who share our vision of leveraging the best of pedagogy & technology to improve learning outcomes for millions of students in India and around the world.”
This investment follows HCL Group’s majority stake acquisition in vernacular edtech platform Guvi in September 2022, emphasizing the company’s commitment to fostering innovation and growth in the education technology sector.
As the edtech landscape continues to evolve, this development comes at a time when industry leader BYJU’S faces internal challenges with investors and a legal battle. Meanwhile, Physics Wallah, another edtech unicorn, reports a significant user base for its AI education suite, Alakh AI.
According to Edtech Report 2022, the Indian edtech market is poised to become a $29 billion opportunity by 2030, indicating substantial growth potential and opportunities for investors and companies alike.
