Hyderabad Angels exits Edutor Technologies, makes 3.5x return on investment

Hyderabad Angels (HA), a network of angel investors focused on early stage business, has  announced that it has exited Edutor Technologies at a 3.5x return. Existing investors have bought out Hyderabad Angel’s stake in the company.  The money was paid in cash. [caption id=“attachment_2385658” align=“alignleft” width=“380” class=" “] Logo[/caption] “This is our first exit and we hope to make few more during the course of the year,” said P S Sreekanth, Investment Director, Hyderabad Angels. HA has been associated with Edutor for over three years. “We were looking for an exit. The existing investors were looking at increasing their stake. We thought it was the right time to exit,” said Sreekanth. Founded in 2009 by IIT/IIM alumni, Edutor Technologies designs, develops, and markets technology-based educational products. It has created an interactive solution for school textbooks and other learning material  for school students and teachers using touchscreen devices that can be accessed anywhere on their touchscreen tablets. HA is actively looking at engaging in the education sector. “We would like to invest in the education sector in any startup that is technology-enabled, asset-light and scalable,” said Sreekanth. “We are helping a few other portfolio companies successfully raise their next round of funding. We are currently focusing on seven deals in the pipeline which are at various stages of closing,” he added. Of the seven deals in the pipeline, one is in the education space, while the others are in the online space in automobiles, event management, travel, gifting, parties and event management; and one in the space of product (hardware) with embedded software. Barring one, term sheets have been issued to the remaining six projects. Media reports earlier mentioned that the company had built a pipeline to invest around Rs 6 crore ($950,000) in five startups in the country. “We have invested Rs 15 crore across 11 start-ups in the last four years,” Sreekanth had said earlier . “Our current portfolio of 11 companies is a fair mix of B2B and B2C businesses and covers a range of industry verticals. Some of our portfolio companies include GIBSS, Thrillophilia, Online Prasad, NowFloats, etc. In the first five months of this year (Jan till May), we have Rs 6 crore of investments in the pipeline as we have already issued term sheets to three companies and are in the process of issuing two more in the coming week.” “Currently, 70 investors form part of Hyderabad Angels and we are happy that with our growing network of investors. We are able to close larger rounds and more importantly provide the required expertise and guidance to our portfolio companies,” said Pradeep Mittal, Chairman, HA. Daggubati Suresh Babu, vice-chairman, HA, said, “As we currently see, we are able to close the rounds much faster in the interest of the entrepreneurs.”