This will be the second instance of institutional financing in the preparatory or tutorial business in India. Mumbai-based Mahesh Tutorials has landed $12 million investment from the Mauritius-based India-focused fund Helix Investments. Helix will pick up a 30 per cent stake in the company, MT Educare Pvt Ltd, which provides coaching for engineering and medical entrance tests, aptitude test preparation and vocational skills training. Helix has one board seat.
A few years ago, MBA admission test coaching company Career Launcher had received investment from Intel Capital, which was the first known investment by a venture capital fund in the business. Mahesh's will probably be the second.
Helix is an India-focused investment fund backed by members of the Cullman and Bloomingdale families of New York. David Danziger, Director, Helix Investments,said that the firm invested $12 million since it was impressed with the ‘‘future growth plans’’ of the company.
The funds will be used for national expansion and also to venture into newer areas like corporate training, according to Mahesh Shetty, founder and chairman of the company MT Educare Private Ltd. It currently has revenues of Rs 36 crore, which is expected to touch Rs 75 crore in the next financial year,. Polymath Advisors was the exclusive advisor for the transaction.
Helix has earlier invested in Goodlife Integrated Fitness Solutions, an India-based healthy prepared food delivery company doing business as Calorie Care, and OSi, a medical transcription outsourcing company.It's likely now more tutorial companies that have scalable business models could get funding. Kota-based Career Point is one such company, while Delhi-based FIITJEE also has revenues in the range of Rs 30-40 crore. It's a highly fragmented business, although cash rich.
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