Nspira Management Services has announced raising funds worth ~USD 75 million of equity investment led by a fund managed by Morgan Stanley Private Equity Asia and Banyan Tree Growth Capital II.
Nspira, which is one of the largest management services players in the private education space in India, provides end-to-end spectrum of services to over 500 educational institutions with a student base of close to 400,000 across 13 states in India.
Further, Nspira also offers coaching services in the medical and engineering competitive examinations space.
As part of the current transaction, a fund managed by Morgan Stanley Private Equity Asia has invested about USD 67MM of primary capital into the Company for a minority stake. The proceeds will be used to fund the organic and inorganic growth plans of the Company. Anand Rathi acted as the sole financial advisor to Nspira for this transaction.
"We will be deploying the funds to scale our business geographically, increase our client base, develop cutting edge education products, modernize our facilities and scale up our digital business. We will also opportunistically evaluate inorganic opportunities that are synergistic with our core business and help us diversify our offerings," said MD Nspira, Puneet Kothapa.
"Nspira is a leading player in the sector and has been instrumental in supporting the delivery of quality education to the masses at affordable prices. We are excited to be partnering with Nspira in its journey ahead," said MD Morgan Stanley Private Equity Asia in India, Nirav Mehta.
"BanyanTree is excited to partner with Nspira, a leading education services provider. BanyanTree seeks to make investments in India which are driven by its large aspiring population thereby providing stability to the business and unaffected by economic cycles," said MD BanyanTree Growth Capital, Naval Totla.
Adding to this Samir Bahl, CEO of Anand Rathi said that this iconic transaction shall help attract investor attention towards the education sector.
"We foresee significant amount of deal activity in this sector over the next 5 years accompanied by consolidation of regional players," added Bahl.
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