Ahmedabad-based edtech startup Saarthi Pedagogy on Tuesday said it has marked the final close of its pre-Series A funding round at $3.7 million (around Rs 30 crore).
The round comprised of two tranches. In the first leg, the company raised $2.1 million from Prestige group’s arm Pinnacle Investments, while in the second leg it secured $1.6 million from GVFL Ltd and other high net-worth individuals.
Saarthi has raised $4.7 million in total funding till date.
The fresh capital will be used for product development, hiring, content creation and in sales expansion.
Founded by Sushil Agarwal in 2018, Saarthi Pedagogy offers learning management solutions for educational institutions to identify improvements in the learning outcomes of students.
The startup claims to cater to 1,500 schools and 2,00,000 students and aims to grow the number to 5,000 schools and 8,00,000 students for the academic year 2023–24.
"We are focused on solving the problem of 4.5 lakh budget schools that charge a fee between Rs 15,000 and 45,000. These are schools where affordability is a concern and students are value-conscious, but they also require a tech-driven learning solution to make a difference in their student's learning outcomes,” said Agarwal.
The funding announcement comes at a time when the edtech sector has been going through one of the toughest funding crunches in the recent past. However, some edtech startups have managed to raise funds of lesser value.
On Monday, upskilling platform Moat School had raised an undisclosed amount as part of its pre-Series A funding round. Prior to that, learning management system startup Toddle secured $17 million led by Sequoia Capital India in a Series A fundraise.
Ahmedabad-based GVFL is amongst the oldest VC firms in India. It had backed 96 startups across nine funds. The firm, in July 2022 marked the first close of its ninth fund at Rs 185 crore. In December, it led the Rs 5 crore seed funding round of the pet grooming platform Zoivane Pets.
Earlier, the firm had invested in 13 startups including Frazzo, Sequretek, Pet Pooja , and Qarmatek, among others through its startup-focussed eighth fund.