Jain Group operates 85 educational institutions in India.
By Sreekanth A Nair
American private equity investor KKR & Co. will loan Rs. 390 crores (around $50 million) to Bhagawan Mahaveer Jain College Education Trust, which runs Bengaluru-based Jain Group of Institutions, a leading private higher educational group in India.
KKR India will help Bhagawan Mahaveer Jain College Education Trust in its expansion plan through their non-banking financial company unit in India.
The financial assistance will be provided as a long-term debt. The move of KKR is considered as a step to enter the local education sector which was dominated by traditional lenders till recently.
Jain Group of Institutions was founded as an educational institution in the early 1990s. Apart from providing higher education, the institutions also function as an entrepreneurship incubator in India.
The group operates 85 educational institutions with 51,600 students and 6,450 employees engaged at the K-12, undergraduate and postgraduate levels, spread across 64 campuses in India.
The group is backed by Dr. Chenraj Roychand and has expanded its campuses rapidly in recent years on debt-financing. With this venture, KKR is expected to emerge as a prominent lender in India with the potential to gear up economic growth.
KKR has already provided debt-finance to many mid-market Indian firms.
The Times of India reported that Roychand had confirmed that he had been in discussions with KKR for the venture.
International investors were distancing themselves from Indian educational sector, which is dominated by not-for-profit trusts. With the entry of KKR, the sector is going to likely witness a drastic change.
2 Comments
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That’s nice to hear but also better to help the student people who are struggling to study due to poverty. Geethapriya, Edubilla, Global Education Needz