Edtech startup Vedantu announced that it has raised $100 million in a Series E round led by Singapore-based ABC World Asia.
Existing investors Coatue, Tiger Global, GGV Capital, and WestBridge among others also participated in the round.
With the fresh round, Vedantu’s valuation stands at $1 billion, making it the latest entrant in the unicorn club.
The startup plans to use the freshly raised funds to strengthen product engineering functions and expand into newer categories via both organic and inorganic routes.
The Rainmaker Group was the exclusive financial advisor to Vedantu on their fundraising.
Co-founder and CEO of Vedantu, Vamsi Krishna said, “We haven’t raised too much money and have always been conscious of our fund raises. Last year we had raised $100 million, and close to 50 percent of that is still in the bank. Also, our burn profile is different from others. The reason for this fund raise is to get good partners and bring in deeper penetration in the market. While everyone talks about edtech today, the category still has a long way to go and is under-penetrated.”
Today, Vedantu’s courses extend from classes for young students to competitive exam preparations like IIT-JEE, NEET, Commerce, CBSE, ICSE, and state exams like Maharashtra Boards. Through its latest offering and fastest-growing vertical, SuperKids, it provides extracurricular classes like English Speaking, Reading, and Coding.
Speaking about the unicorn status, Vamsi says, “While unicorn statuses are consequences and though an important milestone, but what I am really proud of is a million students learning online, and edtech becoming mainstream. I remember my first live class in 2014, and in those days it wasn’t considered viable. We want to create a company that outlasts our lives and continues to innovate for decades to come.”
“Vedantu embodies our investment themes of providing better access to quality education and using digital technology to improve lives and livelihoods. In India, online education has the potential to extend the scope of ‘Right to Education’ to students in the underserved community and capture the ‘Next Half Billion’ income group, representing over half of the country’s student population.”
She explains, “With edtech experiencing meteoric growth in India, Vedantu as the pioneer and category creator in LIVE online tutoring, is driving the tectonic shift towards online learning. Vedantu’s innovative platform empowers teachers who have delivered excellent results to offer personalized education to many students at once, creating the potential for impact at scale. We are pleased to partner with Vamsi and the Vedantu team as they continue to scale and shape learning outcomes for students in India.”
Vedantu has undoubtedly positioned itself as a strong player in the edtech segment. The unicorn status is just another feather in its cap. My heartiest congratulations and best wishes to the entire team of Vedantu.Shishir Gupta, Founder and CEO, StartupLanes
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