Bengaluru-headquartered edtech firm Cuemath has raised $57 million in a fresh round led by Alpha Wave. The new infusion for the nine-year-old company has come after a gap of 18 months.
The Google-backed company had raised $40 million in Series C round at a valuation of $170 million in December 2020. Entrackr had exclusively reported this fundraise.
The new funds will be used to improve “product-pedagogy outcomes, [undertake] hypergrowth initiatives, acquisition and partnerships,” the company said in a statement, adding that it would also use the money to establish its brand in new markets.
Cuemath is backed by Lightrock, Alpha Wave Incubation, Sequoia Capital India, CapitalG (formerly Google Capital), and Manta Ray. These existing investors also participated in the fresh round.
According to the company, it has been valued $407 million in the new round. It’s worth noting that Cuemath was planning to raise $100 million at a valuation of $1 billion in this calendar year, as per a Reuters report in June last year.
The mathematics-focused firm’s customers are primarily in the US and India, although it says it plans to expand its footprint to 100 countries from the present 70 in the coming couple of years.
Cuemath offers one-on-one Math classes for the K-12 segment and helps students prepare for school and competitive tests. As of September 2021, it had over 10,000 tutors and more than 200,000 students on the platform.
Cuemath managed to record a 3.7X jump in its operating revenue to Rs 91 crore in FY21 from Rs 24.4 crore in the preceding fiscal year. As per Fintrackr’s analysis, teaching was the main source of income for the company, contributing over 70% of its total revenue. During the period, its losses also jumped 2.3X to Rs 130.7 crore from Rs 55.33 crore in FY20.