Math-focused edtech platform Bhanzu is in late-stage talks to raise a new financing round, said three sources aware of the details of the transaction. The potential Series A round comes just months after its seed round led by Lightspeed and notable angel investors in February.
“EightRoads Ventures is likely to lead a $15 million worth Series A round in Bhanzu while B Capital and existing investor Lightspeed will participate,” said one of the sources requesting anonymity.
Bhanzu provides experiential math learning courses which enhance the cognitive abilities of children from 5 to 16 years. The company had mopped up $2 million in its first-ever external funding. Its angel investors include Kunal Shah, Gaurav Munjal, Nitin Gupta, Maninder Gulati and Biswa Kalyan Rath.
According to sources, the Hyderabad-based company has grown at a rapid clip in the past three quarters, especially in overseas markets including the U.S. and the Middle East region. Bhanzu, on its website, claims to have trained over 30,000 students through its core offerings.
Neelakanta Bhanu Prakash, the founder of Bhanzu, holds four world records and 50 Limca records for being the fastest human calculator in the world.
“Bhanzu will be valued in the range of $70-75 million in the Series A round,” said the person quoted above.
To be sure, the terms of the deal may change at the last moment. Queries sent to Bhanzu, Eight Roads and B Capital did not elicit any immediate response. We will update the story as and when they respond.
Eight Roads had previously backed edtech companies including Quizizz and Byju’s-owned Toppr. B Capital Group is a multi-stage global investment firm led by Facebook co-founder Eduardo Saverin and former Bain Capital executive Raj Ganguly. The firm has backed close to a dozen Indian startups such as Meesho, Khatabook, Fi, FanCraze, Bounce and only one edtech company i.e. Byju’s. Bhanzu’s existing investor Lightspeed is also an investor in the Byju Raveendran-led company.
During the fiscal year ending March 2021, Bhanzu remained a pre-revenue stage company, as per the company’s regulatory filings. It made a meagre Rs 5.5 lakh in operating revenue with a profit of Rs 1.1 lakh.