Edtech Startup Cuemath Raises $40 Mn In Series C Round Led By Lightstone Fund and Alpha Wave Incubation

The investment comes almost a year after the startup raised $5.5 million in an extended Series B round led by Manta Ray Ventures

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Google-backed edtech startup Cuemath has raised $40 million in its Series C round of funding led by Lightstone Fund (LGT Lightsone Aspada) and Alpha Wave Incubation Fund. Existing investors such as Sequoia, Manta Ray Ventures and Google’s CapitalG also participated in the round.

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Manan Khurma, the founder and CEO of Cuemath

According to a digital publication Entrackr, Cuemath has passed a special resolution to allot 200 equity shares and 144,618 Series C CCPS at an issue price of INR 20,518.56 per share to raise the amount.

In the latest round of funding, Lightstone Fund has invested INR 126.3 crore and Alpha Wave Incubation Fund infused INR 111.43 crore, regulatory filings show.

The investment comes almost a year after the startup raised $5.5 million in an extended Series B round led by Manta Ray Ventures.

The Bengaluru-based startup provides technology-driven after-school learning programmes for students from way down from class 1 to class X.  The startup was established in 2013 by Jagjit Khurma and his son Manan. The startup is also known to offer coding lessons. The startup currently has 5,000 franchises in India and has reportedly conducted 25 million classes for over 100,000 students in the country.

Cuemath’s tutors are currently present in cities such as Bengaluru, Chennai, Hyderabad, Delhi-NCR, Kolkata, Mumbai, and others. However, due to the ongoing pandemic all the classes have been shifted to online.

The funding has also come at a time when there has been a significant demand for online learning as schools and colleges continue to remain shut. With higher internet penetration, the edtech space was growing organically, but the ongoing padmenic has turned out to be the watershed moment for the education sector in the country which was reluctant in adopting technology. Throughout the pandemic, edtech players have been on a spree of raising capitals to cater to more audiences, make their presence felt and foray into new markets. According to a report by RedSheer and Omidyar Network, the country’s edtech market will touch $3.5 billion market by 2022. It further observed online learning for Classes 1 to 12 are projected to increase 6.3 times by 2022, which will create a $1.7 billion market.