Vedantu’s valuation jumps to $280 Million after $6.8 Million in fresh funding
Due to the COVID-19 Crisis and Lockdown, many businesses are struggling to operate, but Online education businesses are shining as schools and other educational institutions close, and students have no choice and they rely on online learning.
The segment has been the focus of attention for the past year and is reflected in the big funding rounds of BYJU and Unacademy. It had also raised three rounds in a row since November of last year. And, they’ve just scored another $ 6.8 million round from KB Global.
Vedantu, an online ed-tech start-up based in Bangalore, raised $ 6.8 million in a new round of funding from KB Global Platform Firm, based in South Korea, on April 20. According to the filings with the Registrar of Companies, as accessed by thestartuptimes team, Vedantu has alloted 3,82,235 Series C2 CCPS to KB Global. Rs 1,353.29 is the premium amount per share.
Earlier this month, Vedantu also got funding of approx. $12.56 million (or INR 96 crore) from Legend Capital, a Chinese venture firm. In Series C1 round, Omidyar’s Ohana Holding also participated.
Last year on 30th April 2019 Vedantu had raised $42 million by Tiger Global and WestBridge Capital in a funding round. In this funding round, Vedantu’s existing investors Accel, Omidyar India, and Tal also participated.
The Trio wanted to provide students with opportunities to learn the way they desire, by providing personalized teaching. In 2011 Vamsi Krishna, Pulkit Jain, and Anand Prakash founded Vedantu. Now Vedantu is using machine learning (ML), artificial intelligence (AI), and Big Data to refine its personalized teaching model. With a virtual learning environment, they offer a live interactive one on one and group classes in real-time.
They also have interactive learning sessions for JEE Mains, NTSE, KVPY, PSA, IMO including other competitive exams. Till now they have 150,000 students who study live on its platform each month with a visitor base of 25 million+ across 1000+ Cities.
In this coronavirus pandemic situation, it is uncertain when students will return to school and resume normal studies. They partnered with schools in Bangalore, New Delhi, Kerala, and Hyderabad to provide free access to its comprehensive learning platform.
Vamsi Krishna, CEO, and Co-Founder of Vedantu had said in a statement:
At Vedantu, we believe that best quality education should be accessible to everyone, anytime. in these risky and uncertain times, We believe Online Learning is the only safe option. The students can study from the safety of their home and avoid travel and public places. We are constantly working on solutions that will drive evolution, fundamentally changing the pattern of teaching and learning today. In This crucial time we are making our platform to support students. The Impact of COVID-19 has been regularly monitored by us and we are here to assist students & schools with all their learning needs.
After This Round of funding, Accel Remains the biggest stakeholder in Vedantu with a 16.75% stake while TAL (The Advanced Learning) Group from china has a 14.35% stake followed by Tiger Global and Omidyar Network with 13.69% and 12.66% stake respectively. After the investment KB Global Now acquired 2.48%. The Trio of Vedantu (ie. Co-Founders) hold 3.23% each and 12.24% stake remains for employee stock options.
As per thestartuptimes calculation, Vedantu has an estimated valuation of $280 million (Rs 2,104.5 crore) post the latest infusion.
Recent Deals in Ed-tech Startup except for Vedantu
From the Last Few Years, Indian ed-tech startup draws investor’s attention. In India Byju’s is the most heavily funded startup. Ed-tech startups Toppr and Unacademy have also raised well funding.
As part of its Series, B Funding E-Learning Platform Lido raised $13.5 million.
Early this month, Camp K12 successfully managed to get funds of approx $4 million (Rs 30 crore) from venture capital firms Matrix Partners and SAIF Partners.
In January 2020, DoubtNut a Gurugram-based ed-tech company completed it’s Series A round of funding led by Chinese tech giant Tencent Holdings, and they raised around $15 million.