Exclusive: Classplus to raise fresh funds; conducts share buyback program

Edtech startup Classplus is all set to raise fresh funds from Owl Ventures in its ongoing round, according to two sources aware of the deal. The Tiger Global-backed company had recently announced its new round of $70 million at over $600 million valuation.

“Owl Ventures is investing $5-7 million in the ongoing Series D round,” said one of the sources. “This includes primary and secondary transactions.” 

According to sources, this will push the company’s valuation marginally. 

Meanwhile, Classplus has also conducted its maiden equity share buy back plan worth Rs 24 crore, as per the company’s regulatory filings. The company has passed a special resolution to buy back 750 equity shares from existing equity shareholders at a price of Rs 3,19,619 per share amounting to Rs 24 crore or $3.15 million.

Classplus’ co-founders Mukul Rustagi, Bhaswat Agarwal along with a clutch of early angel investors and its employees will tender their shares for the proposed buyback. The quantum of buyback represents 4.86% of the paid up equity share capital of ClassPlus.

As the company has satisfactory liquidity in their bank balances, they plan this buy back to maximize the returns of the members and enhance the shareholders value, the regulatory filings further reflect.

Backed by the likes of Sequoia Capital’s Surge, Times Internet, Blume and GSV Ventures, Classplus enables tutors to run all their coaching, communication, assessments, payments, and student engagement programmes through a full-stack mobile solution.

According to the company, it serves more than 100,000 educators and content creators from over 3,000 Indian towns and cities and 75% of its educator base comes from tier II cities and beyond. Besides India, Classplus is set to expand in Southeast Asian markets including Singapore, Vietnam and Malaysia.