Team StartupCity

• Edtech startup Uolo raises $7M (Rs 63 crore) led by Five Sigma to expand its school network, AI-based learning companions, and product offerings.
• Uolo currently serves 2,500 schools and 1.1M students with affordable Rs 600 learning solutions, showing strong revenue growth to Rs 103 crore.
• Funding comes amid an edtech revival, with Uolo aiming to reach 3,500 schools and deepen AI-powered personalized learning tools.

Edtech startup Uolo has raised $7 million or approximately Rs 63 crore, led by Australian venture capital firm Five Sigma in a funding round, with participation from existing backers Blume Ventures, Morphosis and Alicorn. Gurgaon-based Uolo will use the fresh capital to expand its network of partner schools, enrich generative AI-based learning companions and expand overall product offerings as the company goes deeper into India’s mass-market education segment.

Started in 2020 by Pallav Pandey, Uolo runs a school-partnership model whereby it supplies textbooks across subjects like English, mathematics, computer science and general knowledge, with a home-practice app for students. Today, the startup serves upwards of 2,500 schools, representing over 1.1 million paying students across the country.

According to Pandey, affordability and adherence are two of the biggest challenges in adopting technology for education; both could be best addressed through schools, which is precisely why the company has shaped its distribution model around institutional partnerships.

Pandey cited that demand for accessible learning programmes is still a lot higher, while most mainstream edtech offerings are beyond the purchasing power of an average Indian family. Uolo’s offerings are priced at Rs 600, positioning the company squarely within the affordable education segment. Less than 10 percent of its partner schools are considered premium, with the vast majority being from the budget and mid-market categories segments that are often underserved by existing edtech players.

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Meanwhile, the company has also shown strong financial momentum. For this academic year, revenue at Uolo is Rs 103 crore, nearly double the Rs 55 crore in earnings a year ago. According to Pandey, the core physical business of the firm has already started showing a profit, while the fresh funds are likely to be invested in a big way to develop AI-powered home-learning companions, the early prototypes of which are under development currently.

These generative AI tools are meant to be personalized learning assistants that will help students outside of school hours by reinforcing classroom education through interactive and curriculum-aligned guidance.

The fundraise comes at a time when India's edtech sector is showing signs of revival after a prolonged slowdown. In the first half of 2025, the sector secured $120 million across 11 deals against just $22 million over seven deals in the same period last year, according to Venture Intelligence.

A large slice of this capital has flowed to companies scaling tutoring, language learning, and vernacular education on the back of AI-listening and intelligent investor appetite for AI-led innovation in the learning space. With the new capital, Uolo aims to grow its school network from 2,500 to 3,500 and introduce more subjects in its partner schools.

Five Sigma managing partner Peter Mobbs remarked on the investment that education is one of the largest markets for AI, but to be successful, the company needs to engender trust, distribute through schools, and align with the six hours every day a child spends in the classroom-all areas in which Uolo has made good groundwork.