Gaja Capital, a home-grown private equity firm, has bought a significant stake in Kooh Sports in a deal estimated to be around Rs 75 crore, or $10 million.
Initially, Gaja will invest in the education sports firm through a mix of primary and secondary stake buys. In this first stage, a few existing investors are expected to exit from Kooh Sports.
Currently, investors hold approximately 70% stake in the firm. They include Tata Consultancy Services (TCS), HDFC, Elevate Sports and Faering Capital.
Gaja Capital Growing Investment in Sports
The deal, therefore, signifies the growth of investments in the sports ecosystem in India. Elaborating the same point, Gopal Jain, the managing partner and co-founder of Gaja Capital, said that “Youth sports is a $ 20 billion industry globally.” He also added that the transition of Indian youth from watching sports to playing and training for competitive sports opens an array of business opportunities.
Also, the fact that the Indian Government is leaving no stones unturned to develop and nurture sports ecosystem in India under the TOPS scheme, especially with an eye on the forthcoming Olympics further augments the above fact. Thus, the sports industry is witnessing an array of business deals.
Officially, Gaja Capital owned SportzVillage have bought the KOOH sports stakes. SportzVillage provides integrated sports management services to schools and corporates.
These two verticals are handled by SportzVillage’s two handles- SportzConsult, which takes care of sports management, and EduSports, which works in association with various schools to deliver and manage sports programs and physical training.
The deal adds another feather in the Gaja Capital’s hat. It has already invested in firms in the field of sports and education. Their portfolio now includes firms like Educational Initiatives and Career Launcher.
In July this year, Gaja Capital invested Rs 171 crores ($25 million) in Educational Initiatives. Educational Initiative is an ed-tech firm that uses AI and machine learning to provide specialized education to K12 students. (Kindergarten to class XII students)
KOOH Sports – What is the company into?
KOOH is short for Kids-Out-Of-Home. Prabhu Srinivasan and Susir Kumar founded the startup in 2010. As the name suggests, the company is into sports education field. In addition to that, its main target is youths below 16 years of age.
Till date, KOOH has provided sports education to 2,00,000 children and currently have a presence in across 50 cities.
After the deal, Susir Kumar, the co-founder, and chairman of KOOH sports said that the quality of sports education is poor in India. He also highlighted the lack of sports facilities available to students at an early stage.
The infusion of funds as a result from the deal will help for expansion of KOOH, according to Kumar.