James Murdoch And Uday Shankar-led Bodhi Tree Invests $600 Million In Kota-based Test Preparation Firm Allen

James Murdoch and Uday Shankar-led platform Bodhi Tree Systems on May 1 announced that it will buy a strategic stake in Kota-based test preparation firm Allen Career Institute for $600 million (around Rs 4,590 core).

Allen Career Institute Managing Director Keshav Maheshwari said the majority of the investment will be utilised for the company's foray into edtech space, followed by expansion of offline centres both in India and overseas.

''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 requisite approvals.

While the official announcement did not provide any valuation for the transaction, industry watchers believe that the Kota-based firm is likely to have value at $1 billion.

''USD 600 million investment by Bodhi Tree will help scale India's biggest and most successful test-prep company, leverage digital technology to dramatically improve learning outcomes for students in India and beyond,'' the statement said.

Allen has a pan-India footprint with a growing presence in Middle East through 138 classroom centers in 46 cities.

''Allen's unrivaled success and scale provide the right foundation to build the digital education company of the future. We are excited to work with the Maheshwari family to build an outcomes-focused digital education company,'' James Murdoch said in a statement.

''Most of the edtech products & services in the market are currently not solving for the needs of a student. Allen Chairman-designate of the new board, Brajesh Maheshwari said.

''With Allen's time-tested pedagogy and Bodhi Tree's track record in technology, the 2 T's - 'Teaching' and 'Technology', will now come together to finally solve the problems of millions of students of outcome-driven learning in a tech-enabled environment,'' Allen Chairman-designate of the new board, he added.

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, the former president of The Walt Disney Company Asia Pacific and former chairman of Star and Disney India. Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, is an investor in Bodhi Tree Systems.

The venture, run by Murdoch and Shankar as co-chairs, plans to invest in media and consumer technology opportunities in Southeast Asia, with a particular focus on India.