For K12 Techno Services, the parent behind the chain of Orchids International Schools, the way to expand is straightforward: take over more schools. Get more students. Grow the revenue. 

But how K12 goes about it is nothing short of theatrical. 

It specifically wants struggling schools. Ones that are 40–50 years old, or have an ageing patron, or maybe a succession crisis. Or perhaps the business didn’t quite pan out as planned and now there are mounting debts. Basically, it’s keen on schools that are barely able to keep their heads above water. 

Then comes the pitch: K12 offers them an influx of fresh capital, upgraded labs, and a basketball court. Most importantly, it lends them the recognisable Orchids name.

Nothing is too fussy. The ownership doesn’t change hands. The buildings and the payroll remain with the original owners, while K12 takes over the management, handling curriculum kits, learning-management services (LMS), transport, books, and uniforms.

The arrangement is locked in with a 50-year contract, and the school goes from being its own entity to a node in a network of more than 100 schools under the Orchids brand. 

There is more than just a saviour complex at play here.

The bet is that the Orchids name, school buses, and shiny basketball courts will draw in more students. 

K12’s FY25 revenue stood at Rs 400 crore, a slight dip from the Rs 430 crore it recorded in FY24. But K12 isn’t worried—it wants to play the long game. 

It’s a compounding business, built for patience. “It takes about 12 years for a school to break even before you start seeing profits,” said a senior executive at K12 Techno Services, who did not wish to be named.

Even so, this model has managed to drag in those who are not quite as patient: venture-capital and private-equity firms. Peak XV has been on board since 2010, when the company began. Kedaara Capital and Sofina Ventures joined in 2023. In 2024, Kenro Capital invested another $40 million. 

On 31 March, K12 closed a round of secondary sales with investors selling stakes to each other, with firms like Chryscapital, Warburg Pincus, and Permira entering the mix, The Ken has learnt. 

© The Ken