Decoding Cuemath’s latest round and shareholding structure

Edtech platform Cuemath had recently announced raising $57 million in a fresh round led by Alpha Wave. It was the first round for the Bengaluru-based firm in the last 18 months.

While Cuemath did not provide much information about the financing round, Fintrackr has decoded break-up of the round, valuation and current shareholding structure of the company through its regulatory filing with the Registrar of Companies (RoC).

The board at Cuemath has passed a special resolution to issue 10 equity shares and 1,09,366 Series C1 compulsory convertible preference shares (CCPS) at an issue price of Rs 40,205 per share to raise Rs 440 crore or nearly $57 million.

Alpha Wave has spearheaded the round with Rs 233.5 crore or a little over $30 million while Lightrock put in Rs 116.75 crore. Further, Unitus Ventures, Kae Capital (via Kael Opportunities Fund) and Manta Ray Ventures invested Rs 38.91 crore, Rs 23.35 crore and Rs 11.68 crore respectively. Google and Sequoia Capital also joined the new round by infusing Rs 7.78 crore each.

As per Fintrackr’s estimates, Cuemath has raised the fresh capital at around $400 million valuation (post-money). The startup has raised $126 million to date including a $40 million Series C in December 2020 at a valuation of $170 million.

Post allotment of this round, Sequoia Capital will continue to lead Cuemath’s cap table with 19.27% stake followed by Google and Alpha Wave with 16.13% and 15.38% stake respectively. Founder of the firm – Manan Khurma will hold around 14.72% share of the edtech platform. The complete shareholding structure can be seen below:

Cuemath offers one-on-one Math classes for the K-12 segment and helps students prepare for school and competitive tests. According to the company, its curriculum is fully compliant with US Common Core, Cambridge International, CBSE, ICSE standards. The eight-year-old company claims to have tutored 200K students in over 20 countries across the world.

While Cuemath didn’t disclose its financials for FY22 yet, it recorded a significant growth of 3.7X to Rs 90.8 crore in FY21. During the period, annual losses of the firm also soared 2.7X to Rs 130.7 crore in FY21 from Rs 55.3 crore in FY20.

In the k-12 edtech space, Cuemath competes with Byju's, WhiteHat Jr, Codeyoung, Extramarks and Vedantu.