Vedantu Turns Unicorn After $100 Mn Funding

Vedantu raised a new funding round led by Temasek-backed ABC World Asia, catapulting it into the unicorn club; more investors are expected to join in as the round has not closed yet

By
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Edtech startup Vedantu announced to have raised $100 million in their Series E round, led by Singapore-based impact investing fund ABC World Asia. The round also saw strong participation from existing investors Coatue, Tiger Global, GGV Capital, and Westbridge, among others.

Unsplash

With this round of funding, Vedantu’s valuation is at $1 billion, and it underlines its status as the largest K-12 LIVE online tutoring company in India.

The funds will be primarily used to strengthen product engineering functions as well as expanding into newer categories through both organic and inorganic routes.

"Back in 2014, when we held our first LIVE class, nobody believed this would work. It is super satisfying to see this format becoming mainstream and Vedantu leading the way in innovative online delivery experiences. Our vision is simple: Unleash the potential in every child. We will continue to innovate to reach as many students as possible and create 10x better experiences and outcomes for every child at Vedantu. Even though we have made quality teaching affordable and enabled it to reach masses since our inception, it's still very early, much more transformation is still to come which we wish to drive forth. Fundamentally, I believe education has a long cycle, and changes take time to manifest. Seeing any significant change requires patience and the tenacity to sustain long term. With that in mind, we want to create a company that outlasts our lives and continues to innovate for decades to come," said Vamsi Krishna, chief executive officer, and co-founder, Vedantu.

Today, Vedantu offers tutoring courses to young students from 3 years old to 18 years old, as well as preparation for competitive exams such as IIT-JEE, NEET, Commerce, CBSE, ICSE, and state exams such as Maharashtra boards. Through its newest offering and fastest-growing vertical, SuperKids, it offers extracurricular classes like English speaking, reading, and coding.

“Vedantu embodies our investment themes of providing better access to quality education and using digital technology to improve lives and livelihoods. In India, online education has the potential to extend the scope of ‘Right to Education’ to students in the underserved community and capture the ‘Next Half Billion’ income group, representing over half of the country’s student population. With edtech experiencing meteoric growth in India, Vedantu as the pioneer and category creator in LIVE online tutoring is driving the tectonic shift towards online learning. Vedantu's innovative platform empowers teachers who have delivered excellent results to offer personalized education to many students at once, creating the potential for impact at scale. We are pleased to partner with Vamsi and the Vedantu team as they continue to scale and shape learning outcomes for students in India,” added Sugandhi Matta, chief impact officer, ABC World Asia.

Each month, over 35 million users’ access Vedantu through its app and web for free. Its YouTube channel gets 65 million views, the highest in the K-12 segment for any educational company in India. Students also access Vedantu through its dedicated Channels on Airtel TV and TATA Sky. Vedantu catered to over 200,000 paying students last year, a 300 per cent growth over the previous year. This growth was accompanied by a revenue increase of 4.5-time over the previous year, making it the fastest growing online education company in this space and the overall second-largest company in K-12 in terms of revenue and number of students.

Vedantu continues its run of successes by joining the $1 billion club with this latest round which will close over the next few weeks, with more investors joining in subsequent tranches.

The Rainmaker Group acted as the exclusive financial advisor to Vedantu on their fundraising.