Classplus bags $10 Mn in ongoing funding round; valuation soars by 83%

Business-to-business focused edtech startup Classplus has received $10.01 million as the first tranche of its ongoing funding round. 

This is the second investment for the Delhi NCR-based startup in 2020. Earlier, it had raised $9 million in its Series A round in May. The back to back institutional rounds in a matter of four months reflects the heightened interest investors are showing toward edtech startups in India.

Classplus has raised Rs 75.1 crore ~ $10.01 in this round led by Alpha Wave Incubation which was joined by existing investors RTP Global and Blume Ventures. According to regulatory filings, the company has allotted 1 equity share and  7912 Series C preference shares to raise the aforementioned funding.

Last month, Entrackr had exclusively reported about Falcon Edge leading a funding round in Classplus. Alpha Wave Incubation has poured in Rs 56.32 crore whereas Blume and RTP Global have invested Rs 11.26 crore and Rs 7.5 crore respectively.

While Blume and RTP Global are existing backers of Classplus, Alpha Wave Incubation, an early-stage $300 million fund managed by Falcon Edge’s cofounder Navroz Udwadia, is leading the round and now gets a seat on the startup’s board. 

As per Fintrackr’s estimation, Classplus has been valued nearly Rs 550 crore in this transaction, registering an 83.3% increase in valuation within 5 months as compared to Rs 300 crore when it raised last round in May earlier this year.

Post allotment of this tranche, early backer Blume Ventures remains the biggest stakeholders in the company holding 16.03% followed by co-founders Mukul Rustagi and Bhaswat Aggarwal controlling 12.96% stake each. Alpha Wave Incubation has acquired 10.28% stake whereas Sequoia’s Surge Ventures holds 11.58% in the startup.

With a presence in around 100 cities, Classplus is currently used by more than 6000+ coaching centres and more than 5 million students. It enables offline coaching institutes to take their businesses online by enabling technology, communication, practice tests, payments channel and online learning programmes. During the lockdown, the two-year-old startup had tied up with several coaching centres to power their online classes, tests and multimedia content. 

Indian edtech startups are going through their best phase when it comes to raising funds. Byju’s, which is now valued at over $10 billion, has raised over $1 billion in 2020, followed by Unacademy’s $260 million in two funding rounds. Eruditus, Vedantu and Toppr also closed their recent funding rounds at $113 million, $100 million and $50 million, respectively.