Investors are becoming more bullish on online education platforms in India as startups demonstrate growth at the height of a global pandemic that has severely impacted other industries.
Bangalore-based startup Vedantu said on Thursday it has raised $100 million in its Series D financing round, just five months after it closed its Series C funding.
U.S. based Coatue led the six-year-old Vedantu’s new financing round, with participation from some existing investors. The new funds valued Vedantu at $600 million, up from $275 million in February this year when the startup closed its extended Series C round. Vedantu has raised about $200 million to date.
Vedantu offers live and interactive courses for students in grades 6 though 12 — and in recent months it has expanded its catalog to serve students in grade one to five as well, said Vamsi Krishna, co-founder and CEO of the startup, in an interview with TechCrunch.
Students who have enrolled for the interactive sessions are required to answer questions every few minutes by tapping on their smartphone screen or on the desktop. They also can raise their doubts at the end of the session. Some of these sessions are free for students, but a selection of it requires a subscription, said Krishna.
Vedantu today serves 25 million students each month. The startup has amassed an additional 2 million students in recent months as schools closed across the nation after New Delhi enforced a lockdown.
Krishna said Vedantu is adding more than 20,000 paying subscribers each month to the platform. More than one million students attend live classes on the platform each month, he said.
“Online learning adoption in India is at an all-time high setting a new benchmark for the rest of the world. As we continue to focus on driving high-growth ventures, our investment in Vedantu marks our entry into the Indian EdTech market. This move underlines our strategy to partner with companies that are strategically positioned for high growth & scale. We are excited to partner Vedantu in their next stage of growth,” said Rahul Kishore, Managing Director at Coatue, in a statement.
The fundraise by Vedantu comes as investors rush to secure deals with edtech startups in India and major giants look for merger and acquisition opportunities with younger firms. Byju’s, which is now valued at $10.5 billion, raised an undisclosed amount from Mary Meeker’s Bond last month. Unacademy, which raised $110 million from General Atlantic, Sequoia Capital India and Facebook early this year, is in talks with investors to finance its new round.
Earlier this month, Unacademy acquired PrepLadder, another online learning startup, for $50 million. Days later Unacademy acquired majority stake in Mastree. TechCrunch reported last month that Byju’s was in talks to acquire Doubtnut.
More to follow…
