Ed-tech startup Vedantu Innovations Pvt. Ltd has raised $42 million (Rs 300 crore) in a Series C funding round led by US-based investment firm Tiger Global and private equity firm WestBridge Capital.
Existing investors Accel, Omidyar India and TAL Education also participated in the round, Vedantu said in a statement. LGT Group chief executive officer Prince Maximilian of Liechtenstein also invested in the company, it said.
The startup offers a live interactive tutoring platform for students, with its services including individual and group classes.
The Bengaluru-based online tutoring startup said it will use the funds to build its brand, grow its content and technology capabilities.
Company co-founder and chief executive officer Vamsi Krishna said the startup was aiming to make online tutoring a viable alternative to offline coaching and tuitions. Vedantu was differentiating itself by offering a full-stack solution with high-quality education at an economical price point, he added.
Separately, WestBridge Capital managing director Sandeep Singhal said the company has managed to build a product that has a potential to “create impact at scale with a sustainable business model”.
The firm, co-founded by Krishna, Anand Prakash and Pulkit Jain in 2011, offers classes for students between the sixth and twelfth grades in subjects such as Mathematics, Science, Social Studies and English.
It claims to have engaged with learners across 1,000 cities and over 30 countries, with more than 15 million users accessing its free content. One of its products, W.A.V.E, has also been granted an intellectual property (IP) patent for “measuring the effectiveness of an interactive online learning system”.
Tiger Global has increased the pace of its investments in India ever since it ended a three-year hiatus towards the end of last year.
It made at least two investments in the past week. The firm took part in a $120 million (Rs 862 crore) funding round in financial technology startup Cred. It also invested $15 million (approximately Rs 107.88 crore) in INDwealth, an artificial intelligence-based wealth management venture.
Earlier this month, it led a Series E funding round of $75 million (Rs 520 crore) in UrbanClap Technologies India Pvt. Ltd, a Gurugram-based startup that operates a home services marketplace.
WestBridge, a homegrown PE firm, was founded by KP Balaraj, Sumir Chadha, SK Jain and Sandeep Singhal. The firm says its typical investment ranges between $10 million to $80 million, according to its website. While WestBridge usually focusses on publicly listed companies, it has also invested in a number of privately held firms,
Earlier this month, it led a Rs 391 crore (around $54.6 million) Series B funding round in Roppen Transportation Services Pvt. Ltd, which runs bike pooling and taxi startup Rapido.
Last month, it bought nearly 41.35 million shares, or a 1.78% stake, in Yes Bank Ltd via open market share purchases. In June, it led a $52 million (about Rs 360.25 crore) Series B round in online lending platform Biz2Credit Inc.
Deals in the Ed-Tech segment
The online learning and education technology segment has attracted considerable investor interest of late.
The valuation of ed-tech firm Byju’s crossed $5 billion after it raised $31.3 million in a funding round in March led by existing investors General Atlantic and Tencent Holdings Ltd.
In December last year, Byju’s announced that it had secured $540 million (Rs 3,855 crore then) in a round led by South African tech conglomerate Naspers.
Earlier this month, ed-tech startup AdmitKard raised $1 million (around Rs 7.15 crore) In June, ed-tech platform for competitive exams Unacademy raised $50 million (Rs 346 crore) in a Series D funding round from Steadview Capital, Sequoia Capital India, Nexus Venture Partners, Blume Ventures and others.