The Vedantu e-learning platform is the newcomer to the Indian unicorn club, raising $ 100 million in its Series E funding round led by investor ABC World Asia backed by Temasek and existing investors Coatue Management, Tiger Global, GGV Capital, Westbridge.
Vedantu reached a valuation of $ 1 billion, a significant jump from its valuation of $ 600 million during the last fundraiser in 2020. With this funding, Vedantu became the fifth edtech startup to join the club of unicorns outside of Byju’s, UpGrad, Unacademy and Eruditus.
The Bengaluru-based company previously denied rumors of the company’s acquisition by industry leader Byjus and consolidated its presence in the edtech sector while offering services through partnerships with cable operators. by satellite. The major edtech has also expanded its services to offer preparatory platforms for aspiring engineers, medical courses.
The company said it has onboarded 35 million students on the platform and is targeting half a million subscription users by the end of this year. The platform currently has 200,000 paying customers.
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âWe are delighted to announce $ 100 million Series E led by ABC World Asia. With this round, Vedantu’s valuation is $ 1 billion. We would like to thank all of our investors for believing in the vision and having the deep confidence in us to create impact at scale, âsaid Vamsi Krishna, CEO and co-founder of Vedantu.
He said the company has yet to use half of the money from the last funding round ($ 100 million) and that the focus will be on profitability and stock market listing in the 1 to 2 years. coming years.
âIn 2014, when we ran our first LIVE course, no one believed it would work. It’s very satisfying to see this format go mainstream and Vedantu pave the way for innovative online delivery experiences. Our vision is simple: unleash the potential in every child. We will continue to innovate to reach as many students as possible and create 10x better experiences and outcomes for every child at Vedantu. Even though we have made quality education affordable and allowed it to reach the masses since our inception, it is still very early, many more transformations are yet to come that we wish to lead. Basically I think education has a long cycle and changes take time to manifest. Seeing any significant change requires patience and tenacity to sustain it for the long haul. With this in mind, we want to create a business that survives our lives and continues to innovate for decades to come, âhe added.
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The company plans to deploy the new funds to expand its offerings for students in grades 1 through 5. Like its industry peers, Vedantu also anticipates global expansion, international expansion, and merger and acquisition opportunities.
The Covid-19 pandemic has proven to be a blessing for Indian edtech companies, which have also benefited from increased investor interest following the Chinese government’s crackdown on private edtech companies in the country.
In 2020, India’s online learning space received $ 2 billion in funding when the pandemic hit various other sectors hard, according to a report by research firm Traxcn. Market leaders, including Byjus, Unacademy and upGrad, have attracted investment from global PE / VC funds and have continued to acquire smaller companies, which offer an offering of specialized technology products or services, which has led to further consolidation within the sector. India’s IT industry will reach a market size of $ 30 billion by 2030.
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âVedantu 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 reach of the ‘right to education’ to students in the underserved community and to capture the ‘next half billion’ income group, representing over half of the country’s student population. With edtech growing by leaps and bounds in India, Vedantu, as a pioneer and category creator in LIVE online tutoring, is driving the tectonic shift towards online learning. Vedantu’s innovative platform enables teachers with excellent results to deliver personalized instruction to many students at once, creating the potential for large-scale impact. We are delighted to partner with Vamsi and the Vedantu team as they continue to expand and shape student learning outcomes in India, âsaid Sugandhi Matta, Director of Impact at ABC World Asia .
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