Exclusive: Classplus set to raise over $30 Mn led by GSV Ventures

Over the past year, edtech companies have been on a roll and collectively managed to raise over $3 billion. This year, Byju’s alone cornered $1.5 billion whereas upGrad and Lead School have mopped up $120 million and $30 million, respectively.

Joining the league of these companies is Classplus which is also set to score over $30 million in a new round, according to three people aware of the details of the transaction.

“GSV Ventures would lead the round while existing investors including Alpha Wave Incubation are also participating,” said one of the people requesting anonymity.

This would be the third fundraise by the Noida-based venture in the past year. It had raised over $10 million and $8 million in September and May 2020, respectively.

According to sources, Classplus will be valued in the range of $130-150 million (post money) in the potential transaction. “The proceeds will be used to ramp up tech capabilities and expansion,” said a second source who also wished not to be named.

Entrackr’s queries sent to GSV, Classplus and Falcon Edge’s AWI didn’t elicit any immediate response. We will update the story in case they do.

It’s worth noting that the valuation of Classplus took a jump of 83% during its Series B round. According to Fintrackr, it was valued Rs 550 crore or $74 million in the last round as compared to Rs 300 crore or $40 million during its Series A round in May last year.

Classplus digitises offline coaching institutes by enabling technology, communication, practice tests, payments channel and learning programmes. Blume Ventures, Sequoia Capital and Surge are its early institutional backers.

If the deal materialises, Classplus would be the third investment by the New York-based GSV in the Indian edtech company. Early this week, GSV led a $30 million Series D round in the Mumbai-based Lead School. The VC firm had also participated in Quizizz’s $12.5 million Series A round last March. 

Importantly, GSV IS is a female-led, multi-stage VC firm focused on the education sector. It claims to manage over $400 million in global edtech investments.

Apart from Byju’s, upGrad and Lead School, Unacademy is in conversations to raise a $100 million round from D1 Capital Partners and SoftBank at a valuation of $3 billion. Entrackr had exclusively reported the potential round on April 20.