HCL Group invests Rs 166 crore in edtech Educational Initiatives

HCL Group has made an investment of Rs 166 crore (approx. $20 million) in Educational Initiatives (Ei), an education software company.

The investment marks a secondary sale, which will allow HCL to acquire a minority stake previously held by Mumbai-based private equity firm Gaja Capital. The investment is aimed at bolstering Ei's expansion plans and enhancing its product offerings in the education sector, as per the company's statement. 

Expansion and growth plans

With the fresh capital, Ei is setting its sights on expanding its geographical footprint to new markets, including South Africa, Kenya, Ghana, and Saudi Arabia. At present, The company is operational in India, the UAE, South Africa, and Singapore.

Notably, It is also exploring acquisitions of edtech product companies. 

“We have demonstrated our ability to improve learning outcomes and empower school teachers to achieve their intent of every child learning well regardless of their parent income. I’m excited to welcome HCL Group as investors who share our vision of leveraging the best of pedagogy and technology to improve learning outcomes for millions of students in India and around the world,” said Pranav Kothari, CEO, Ei.

Ei market presence  

Founded in 2001, Educational Initiatives operates on a B2B model, offering a suite of assessment and adaptive learning products to schools. These products are designed to aid teachers and students in improving learning outcomes. 

User base 

It claims to have over a million paid users and is registering a more than 56% jump in its revenue from operations in FY23, moving from Rs 62 crore in FY22 to Rs 97 crore.

Shikhar Malhotra, Director, HCL Group, said, “We’re thrilled to invest in Ei; it is a great organisation with technological prowess and a commitment to effecting positive societal change. The organisation offers a distinctive blend of scalable technology, impactful social initiatives, and sustainable growth.”