School, Process Outsourcing and Ecommerce Website Seeks Investors

Opportunity Snapshot

  • Country: India India
  • Industry: Education, Training
  • Stage: Seed
  • Investment size: $30,000,000 / min. $30,000,000
  • Type of investment: Equity

Investment Opportunity

Investors are offered the opportunity to invest 30 million USD and get 40 million USD in 5 years + 50% ownership of a 100 million dollar company in 5 years.

k2l Knowledge Solutions (P) Ltd.
(Kindergarten to life)
Product/Service 1: Setting up an International Standard School, LCBC School (Let children be children School) under the Ekkam Educational and Social Welfare Trust (EESWT)

Product/Service 2: School Process Outsourcing (SPO)

Product/Service 3: E Commerce Website for Schools, School Vendors and Individuals (Buy, Sell, Trade and Outsource School Services) (http://www.makeyourschool.com )

Executive Summary:

Education Sector is the top booming sector in India. 3 Billion Dollar investments are expected to pour in over next decade.

Over 17 Lakh Schools already existing. Acute Shortage of Schools.

Every Year Schools are being setup in thousands all over the country.

The Sector and School lacks Quality Resources, processes, staff, systems, procedures, professionalism, dynamism, adventurism, new age corporate methods and profit earning objectives.

K2l Knowledge solutions (P) ltd will be an knowledge Solutions company, registered as a private limited company in Pune providing solutions from kindergarten child (k) to Life (L) thereby deriving it’s name k2l.

Business steps would be as follows:

 Company formation and registration of k2l knowledge solutions (p) ltd in Pune.
 Formation of Ekkam Educational and Social Welfare Trust and Registration of Trust Deed
 Purchase of 15 acres prime land closest to Pune City preferably in fast developing area.
 Setting up of International Standard School LCBC School
 School Process Outsourcing (SPO) Product Launch
 http://www.makeyourschool.com designing and launch

Investment required by investors: Rs 130 crores seed capital to fund the startup

Investor owns 50% shares in k2l Knowledge Solutions(P) Ltd. Investor appointed Director is in the Board of Directors for k2l knowledge solutions (P) ltd.

Investor gets return as follows:

 First Year: Rs 2860250/- (10% of the Profit)
 Second Year: Rs 8879000/- (10% of the Profit)
 Third Year : Rs 78976250/- (25% of the Profit)
 Fourth Year: Rs 152487500/- (25% of the Profit)
 Fifth Year: Rs 1312800000/- (60% of the Profit)

Investor still owns 50% of the shares of the company and can sell it’s stake and exit after 5 years to any other interested investor, buyer, open market etc. By this time the yearly profits would be close to 250 crores annually.

Competitive Advantage

Market Analysis:

a) Good Quality Schools with Good Quality Principal and teachers are in acute shortage in India.

Good Quality Schools where Children are happy, not treated badly, where Parents are happy and satisfied, where parents are respected, where good quality teachers are there to teach, where there are good quality sports infrastructure, good quality school infrastructure and most importantly good quality supportive, positive, trustworthy and child friendly top management including Principals are almost not existent in India.

Tremendous Young, Professional, high earning middleclass population is increasing every year. They are expending and ready to expend 15% of their incomes towards their children’s education in good schools.

Businessmen and self-employed professionals with high earnings are on look-out for real good international standard schools.

A Good Quality School delivering what it promises and concentrating on children’s happiness and teaching along with parent’s respect will sell like hot cake for sure.

LCBC School will fulfill this first with one school and after 5 years of performance, it can go throughout the country in franchise manner.

b) Most of the Existing Schools are suffering at the hands of poor quality service, poor teachers, poor standard of children’s happiness, poor standard of facilities, poor standard of relationship with parents.
This creates tremendous demand for our second product of School Process Outsourcing. Together with proving and creating excellent system and process in our own school, we can get other schools to outsource the departments and services as listed in our School Process Outsourcing Product above. These departments or services distinguish a Excellent and Successful School from an average school.
Tremendous business prospect is there in this product and easily we can get lots of reputed schools to outsource these departments to us.

c) There is a high level of requirement for an Ecommerce one stop website for buying, selling, trading, getting information, sharing information about school, school products, services, policies, setting up, startups etc.
http://www.makeyourschool.com could be a path-breaking first of it’s kind revolutionary trading platform for Schools, school vendors, business corporates, school monitoring agencies, audit agencies trademark agencies, service providers, business services, school staff, etc.

This website has a potential of becoming as big as http://www.alibaba.com if designed and marketed properly.

• Marketing

The Co- founders are very well experienced in the Education Sector with a huge network of contacts in the Schools, Education Professionals and Education companies.

The Marketing for getting customers would follow multipronged approach as follows:

 By Word of Mouth through existing huge contact network in Schools, Education Companies and Vendors.
 Social Network Marketing on Facebook, Twitter etc on School Groups and vendor groups
 Online Marketing and promotions
 Cold Calls in Schools and Explaining the concepts
 Advertisements and Promotions in Newspapers and Educational Journals
 Seminars and Forums for Educational Discussions inviting Schools and school heads
 Participating in Education EXPOS and Fairs which are very regular and common affair nowadays in India due to the boom in this sector
 Media Advertising including TV and Radio Advts

• The Management Team : The Co - Founders Mr Kiranjit Singh Pannu, BE, MSW and Mrs Suman Pannu, BCOM, MBA are very well qualified, experienced, competent and committed professionals who are having this vision of transforming the Education/ School Sector in India. And not just words but actual practical quality revolution and change in Schools. This is to say they firmly believe that just the four walls and latest infrastructure won’t do but the quality of work ethics, processes, systems, procedures, staff behavior, teaching, support services, customer care, English language skills and professionalism in schools need to be transformed and changed.

They have together put in about 20 years of Professional service out of which arounf 10 years in Educational sector, setting up schools, systems, administration, academic, teaching etc.

Right now they are ready to take this transformation to a business scenario and need only like-minded, determined and professional investment company to create this successful business.

Rationale for the deal

Investors Investment, Returns and Exit System/ Scenario

Investment required by investors: Rs 130 crores seed capital to fund the startup.
Investor owns 50% shares in k2l Knowledge Solutions(P) Ltd. Investor appointed Director is in the Board of Directors for k2l knowledge solutions (P) ltd.
Investor gets returns as follows:

 First Year: Rs 2860250/- (10% of the Profit)
 Second Year: Rs 8879000/- (10% of the Profit)
 Third Year : Rs 78976250/- (25% of the Profit)
 Fourth Year: Rs 152487500/- (25% of the Profit)
 Fifth Year: Rs 1312800000/- (60% of the Profit)

So Investor invests Rs 130 crores and gets Rs 155.60 crores in 5 years. After 5 years Investor still owns 50% of the shares of the company and can sell it’s stake and exit after 5 years to any other interested investor, buyer, open market etc. By this time the yearly profits would be close to 219 crores annually.

Use of financing

Investors Investment, Returns and Exit System/ Scenario

Investment required by investors: Rs 130 crores seed capital to fund the startup.
Investor owns 50% shares in k2l Knowledge Solutions(P) Ltd. Investor appointed Director is in the Board of Directors for k2l knowledge solutions (P) ltd.
Investor gets returns as follows:

 First Year: Rs 2860250/- (10% of the Profit)
 Second Year: Rs 8879000/- (10% of the Profit)
 Third Year : Rs 78976250/- (25% of the Profit)
 Fourth Year: Rs 152487500/- (25% of the Profit)
 Fifth Year: Rs 1312800000/- (60% of the Profit)

So Investor invests Rs 130 crores and gets Rs 155.60 crores in 5 years. After 5 years Investor still owns 50% of the shares of the company and can sell it’s stake and exit after 5 years to any other interested investor, buyer, open market etc. By this time the yearly profits would be close to 219 crores annually.

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