Edtech startup Vedantu has raised $24 million in extended Series C round led by GGV Capital along with existing backers. About six months ago, Vedantu kicked off Series C round led by Tiger Global and Westbridge Capital.
Vedantu, which currently focuses on grade 6-12, is planning to enter in K-12 category. The fresh fund will be utilised for branding and expanding its presence to the new category.
The addition of the new category will give Vedantu an edge over stalwart Byju’s, which is yet to enter in Kindergarten category. Interestingly, Byju’s and Vedantu are only two pure-play edtech companies where Tiger Global is a common investor.
As far as expansion is concerned, Vedantu will focus one category at a time, said the company’s CEO, Vamsi Krishna, in a press statement.
Since the last funding round, Vedantu’s users base accessing free content has grown 10 million to 25 million per month whereas the paid users base has also surged by 100,000 to 250,000.
Founded by Krishna, Pulkit Jain, Saurabh Saxena, and Anand Prakash, Vedantu provides monthly tuitions, exam preparation for NTSE, PSA, KVPY, IMO, JEE Mains, among others. It’s flagship product WAVE helps track learners over 70 parameters that help teachers understand their progress properly.
The company hires professional teachers to develop their courses and study materials. It generates revenue from selling subscriptions ranging from Rs 100 to Rs 5,000 for live and interactive sessions.
The company’s focus on generating content and growth also reflected on its financial performance in FY19. Vedantu spent over Rs 39 crore to earn operational revenue of Rs 10.44 crore in the year ending March 2019. During FY19, the eight-year-old FIRM had recorded a 1.4X increase in losses to Rs 27.31 crore.