Edtech startup Unacademy is looking to purchase a significant stake in Sequoia Capital-backed K12 Techno Services, which runs the Orchids International chain of schools, according to an Economic Times report.
Discussions on the deal have begun, with Sequoia likely to exit Orchid after the deal, as per the report.
"The talks are on for an investment of around $25-30 million by Unacademy...it may become a larger transaction. The discussions are currently in final stages..." a source told the publication.
Moneycontrol could not independently verify the story.
Unacademy and Orchids International declined to comment when contacted by The Economic Times.
Sofina and Unacademy will invest in K12, and the current management will continue to own a minority stake and run the business, the report said. A full sale is likely if the offer is "compelling enough", a source told ET.
"Unacademy wants to tie up its physical presence and a lot of back-end operations with the acquisition of a chain of schools," a source told the paper. "Besides Orchids, it is also actively looking to acquire a chain in north and west of India."
Bengaluru-based Unacademy had on July 26 announced the acquisition of live game streaming platform Rheo TV.