Vedantu secures $100 million in Series D funding
Amid the much-discussed funding activities of start-ups, yet another startup Vedantu, successfully raises a fund $100 million in Series D funding, flouting all the murmurs. The funding round was led by US-based Coatue Management with presence of other investors namely Tiger Global, GGV Capital, Omidyar and Westbridge Capital. The latest capital raising values the online live tutoring startup at $600 million, making it the second most valued Indian educational technology startup after Byju's. The deal also marks the latest bet for a large foreign investor in India’s fast-growing ed-tech space.
The edtech start-up informed that it recorded a 220 per cent growth in users to 2 million unique students who attended its live classes during the past three months. It is also said that Rahul Kishore, MD of Coatue Management will soon be joining Vedantu's board of directors.
What attracted investors interest towards Vedantu was its strong growth and category management in live online tutoring, as mentioned by Vamsi Krishna, Co-founder & CEO of Vedantu."It was a good opportunity to raise more money and create a war chest," he said.
Going further, the start-up will be investing in its brand and new categories of Grade 1-5 education, using the proceeds from the latest round.
The money from Coatue marks the third investment round in Vedantu in the last 12 months, after it raised $24 million led by GGV Capital in February, which was an extension of the company's Series C round that had seen Tiger Global lead an investment of $42 million. The company confirmed that it had cumulatively raised $200 million across multiple funding rounds.
"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," Coatue's Kishore said in a statement.
Vedantu claims revenue has grown three-and-a-half times in the past four months, equivalent to growth it achieved in the whole of previous years. It also has recently made its first investment, pumping $2 million into doubt solving platform Instasolv, which it said would help grow its base in Tier 3 and Tier 4 cities.
"Consolidation is happening, but compared to other parts of the world, India’s online education sector is still early in its journey," said Krishna, adding the company will look for founders in the space where there is a strong synergy.
Going further, the start-up will be investing in its brand and new categories of Grade 1-5 education, using the proceeds from the latest round.
The money from Coatue marks the third investment round in Vedantu in the last 12 months, after it raised $24 million led by GGV Capital in February, which was an extension of the company's Series C round that had seen Tiger Global lead an investment of $42 million. The company confirmed that it had cumulatively raised $200 million across multiple funding rounds.
"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," Coatue's Kishore said in a statement.
Vedantu claims revenue has grown three-and-a-half times in the past four months, equivalent to growth it achieved in the whole of previous years. It also has recently made its first investment, pumping $2 million into doubt solving platform Instasolv, which it said would help grow its base in Tier 3 and Tier 4 cities.
"Consolidation is happening, but compared to other parts of the world, India’s online education sector is still early in its journey," said Krishna, adding the company will look for founders in the space where there is a strong synergy.
