The startup funding spree in the edtech space continues with Stones2milestones, a company that focuses on enhancing English reading capabilities in young students raising $2.5 million (INR19 crore).

The Gurugram headquartered edtech startup that has developed its proprietary application Freadom, announced the bridge funding from existing investors Unreasonable Capital and limited partner Goldhrish Foundation on Wednesday.

The angel investment share in this round was led by an investment banker from Singapore along with a few marquee lawyers along with three angel platforms, AngelList US syndicate, LetsVenture and Faad Network.

Founded in 2016 by Kavish Gadia and Nikhil Saraf, Stones2milestones’Freadom app is a comprehensive learning platform for children aged 3-10 to strengthen their English reading, speaking and conversation skills. The company claims that the content and teaching methodology used by the application has led to a 30 percent improvement in the academic performance of hundreds of primary school students, as well as improved their confidence.

"With a product that''s working for 2,00,000 plus users, a profitable business model and a mission-aligned passionate leadership team, this round of capital is well-timed for fueling growth," says Kavish Gadia, Founder, Stones2milestones.

In a statement the company said that Stones2milestones has achieved an annualized revenue of USD 1.5 million (about Rs 11 crore) and expects ARR (annual recurring revenue) to cross USD 7.5 million (around Rs 56 crore) by March 2021. The lockdown has acted as an enabler for the company as the Freadom app saw massive adoption.

The company intends to utilize the fresh capital to expand its social media presence and marketing ventures; additionally the company also plans to go international by Jan 2021. "English is a second language and this segment is growing fast, we are now scaling our solution fast to reach 10 million within the next 12-18 months," said Kavish in a statement.