Bodhi Tree Systems, led by James Murdoch and Uday Shankar, will buy a strategic stake in the Kota-based Allen Career Institute for $600 million (about 4,590 base rupees), a joint statement said on Sunday.
Allen Career Institute chief executive Keshav Maheshwari said the majority of the investment will be used for the company’s foray into the edtech space, followed by the expansion of offline centers, at the both in India and abroad. “Our partnership with Bodhi Tree will not only help us scale our Indian operations through technology, but also fuel our growth journey in the Middle East,” Maheshwari added.
The transaction is expected to close within three months and is subject to closing conditions and required approvals. “Bodhi Tree’s $600 million investment will help scale India’s largest and most successful test prep company, leverage digital technology to dramatically improve student learning outcomes in India and beyond,” the statement read.
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Allen has a pan-Indian footprint with a growing presence in the Middle East through 138 class centers in 46 cities. “Most edtech products and services on the market currently do not meet the needs of a student. With Allen’s proven pedagogy and Bodhi Tree’s background in technology, the 2 Ts – ‘Teaching’ and ‘Tech ‘, will now come together to finally solve the problems of outcomes-driven learning in a technology-driven environment for millions of students,” said Allen, new board chair-elect, Brajesh Maheshwari.
Bodhi Tree Systems is a newly formed platform between Lupa Systems Founder and CEO James Murdoch, son of media baron Rupert Murdoch, and Uday Shankar, former Chairman of The Walt Disney Company Asia Pacific and former Chairman of Star and Disney India.
Bodhi Tree Systems will leverage its founders’ shared track record of building consumer businesses to build Allen into a digital education company of the future.
Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, is an investor in Bodhi Tree Systems. “Allen’s unparalleled success and scale provides the right foundation to build the digital education enterprise of the future. We are excited to work with the Maheshwari family to build a results-driven digital education business,” said James Murdoch.