Mumbai-based private equity firm Milestone Religare has invested INR600 million (€9.9 million; $13.5 million) in Resonance Eduventures, a Kota-headquartered company that provides test-preparation training and coaching for competitive examinations in India.
The firm has acquired a significant minority stake in the business, a Milestone Religare spokesman said.
Resonance has more than 20,000 classroom students and 8,000 students enrolled for distance education. Established in 2001, the company is focused on providing training for the Indian Institute of Technology Joint Entrance Examination. Over the last two years, Resonance has expanded into other Indian cities by establishing centres and associating with schools in Jaipur, Bhopal, Delhi, Lucknow, Kolkata, Nagpur, Mumbai, Udaipur, Bengaluru, Bhubaneswar and Rajkot.
“Education is a high growth and relatively recession proof sector, which is rapidly evolving,” Rajesh Singhal, managing partner of Milestone Religare Investment Advisors, said in statement.
Singhal is joining the board of Resonance.
The investment was made from the India Build-Out Fund – I, which was targeting commitments of INR6 billion ($135 million) and closed on about $100 million. The fund has a primary focus on the country’s healthcare and education sectors and a secondary focus on media, logistics and facilities management, including food services and security services.
The investment in Resonance is the fund’s fourth investment in six months. Its other investments are in IMS, an educational services player focused on test preparation, skill development and formal education; Krishna Institute of Medical Sciences Limited, a corporate hospital based out of Hyderabad; and HealthCare Global Enterprises, which manages a network of cancer care centres in India.
Milestone Religare was set up in April 2009 as a joint venture between Religare Venture Capital, the private equity arm of Indian financial services firm Religare Enterprises, and Mumbai-based private equity and real estate firm Milestone Capital.