Career Point Infosystems Ltd. (“Career Point”), one of India’s leading integrated education solutions provider, today announced that it has raised INR 500 million in equity capital from Franklin Templeton Private Equity Strategy (“FTPES”), a private equity portfolio managed by Franklin Templeton Asset Management (India) Private Limited. FTPES is advised by its affiliate Darby Asia Investors (India) Limited.
o3 Capital was the Sole Advisor to Career Point for this transaction.
Career Point intends to use the funds for its foray into secondary and higher education segments. The company will also invest part of the capital to strengthen its existing coaching business where it has launched the unique Syncho School (VSAT enabled) and Knowledge Lab offerings.
Established in 1993, by IIT-Delhi graduate Pramod Maheshwari, Career Point has established Kota, as the national preparation hub for engineering entrance aspirants. Career Point has built a national footprint with over 29 centers across India with an annual student intake of over 24,000 students. It today provides coaching for IITJEE, AIEEE and AIPMT exams.
Pramod Maheshwari, MD, Career Point, said, “We are pleased to partner with a marquee financial investor like Franklin Templeton and this infusion of equity will allow us to make long term investments for our foray into secondary and higher education. The reconstituted board along with FTPES would give us the right strategic guidance as we move into new business segments and geographies.”
Deepesh Garg, Director, o3 Capital, said, “India’s Private Education spending is estimated to be US$ 40 billion (2007) and it is projected to grow to US$ 70 billion by 2012 at a CAGR of 16%. Career Point has built a strong base for itself in the sector and the infusion from FTPES will help it capitalize on the tremendous opportunities presented to the private players. Its presence in multiple segments including entrance exam coaching, secondary and higher education will help it deliver exponential growth and emerge as a dominant player in private education sector.”
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About Career Point Group
Career Point Group, established in 1993 by Mr. Pramod Maheshwari, a B. Tech. graduate from IIT Delhi, is a pioneer in the Engineering Entrance test preparation segment of the fast growing Indian test preparation market. Career Point Group has over a period of time transformed itself, from being mainly a coaching entity operating out of Kota to one of India’s leading provider of quality tutoring programs and services to a large and diverse student base. With dedicated efforts and investment in brand building exercises, now, Career Point has become a recognizable name in IIT-JEE, AIEEE and other Engineering Entrance Exams. To complete the value chain and become a complete learning solution provider, Career Point Group through its expertise developed in the field of education plans to manage, operate and build Kinder-Garden to Class 12 (K-12) Schools and also enter the Higher Education space by setting up a University.
For more details, please visit www.careerpointgroup.com.
About Franklin Templeton Private Equity Strategy
FTPES is a private equity investment product offered to high net worth individuals in India and closed in 2008 with total capital commitment of INR 6300 million (US$147 million). The objective of FTPES is to make selective investments in high growth, mid-sized unlisted companies in India - in areas such as infrastructure, manufacturing, and consumer goods, and in related sectors.
About Darby Overseas Investments Limited
Darby Overseas Investments Limited is the private equity arm of Franklin Templeton Investments, and is a premier investment manager in emerging markets private equity and infrastructure investing with over US$2.6 billion assets under management.
About o3 Capital
o3 Capital is a knowledge-oriented investment banking and financial services firm that offers a gamut of advisory solutions to its domestic and international client base. o3 Capital provides Corporate Finance, Asset Management and Broking & Research services to a wide range of clients including Corporates, Private Equity Funds, Financial Institutions, Family Offices and HNIs. The company was ranked 3rd in Asia Pacific Private Equity Announced Deals for Q1 2009 and was ranked 8th in Global M&A Announced Deals by Indian Investment Banks for 2008 by Bloomberg. o3 Capital has successfully closed 30 transactions since its inception in January 2007 cumulatively worth over USD 1.5 billion. The firm operates out of its offices in Bangalore, Mumbai and New York. For more details, please visit www.o3capital.com.