Edtech Startup Vedantu has raised $42 Mn in a fresh funding round led by New York-based Tiger Global Management and WestBridge Capital. Among the existing participants in the funding were Accel, Omidyar India, TAL Education and Prince Maximilian of Liechtenstein.
Headquartered in Bengaluru, the startup will use the fresh funding to build awareness about the brand along with investing in its technology operations.
Almost 80% of users who have an access to Vedantu’s free content hail from tier 2 cities and smaller cities. On the other hand, 55% of its paid users are in small towns.
Adding to this, the startup aims to increase its subscriptions by lowering the prices of its live tutoring classes.
“Vedantu has been the first to reimagine the concept of tutorials in the country and create an exponential shift towards the online LIVE Tutoring model. Vamsi and team are extremely focused on improving the educational outcomes of students using their unique online offering,” said Anand Daniel, partner at Accel Partners.
“Vedantu has been growing at 30% month-on-month for the last six-seven months. MCA filings showed that in FY18, the company INR 5.62 Cr revenue, a nearly 4.3X growth from FY17. The company’s expenses also increased marginally from INR 19.6 Cr in FY17 to INR 25.31 Cr in FY18”, he further added.
Founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, Vedantu is an online tutoring platform where students are provided online tutions over the internet.
The company reportedly claims to have 15 million users with 150k paid users for its live tutoring programme.
Last year, Vedantu has raised $19.9 Mn, with an $11 Mn Funding round led by Omidyar Network last year.