Earlier this week, Vedantu, the new-generation ed-tech startup providing a medium for live-tuition between teachers and students, raised $100 Million in Series D funding, led by Coatue.
The latest funding raised the company’s valuation to an all-time high of $600 Million. It also crossed a new benchmark, securing $200 Million in total funds, collected through companies including Legend Capital, GGV Capital and Omidyar, while being advised by The Rainmaker group, acting as the exclusive financial advisor on funding.
The Origins, The Pandemic and Growth
Vedantu was founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain to provide an interactive tutoring platform enabling teachers to tutor students online.
Watch: Vamsi Talk About Vendantu
Before the Pandemic, Vedantu had usually added over 50L paid users on its platform annually; however, due to the lockdown, the company said it had acquired 100K new users within 10 days during April when the lockdown happened.
The startup is also noting a 42% increase in user loyalty on its platform, compared to 54% of paid users earlier. The company also noted a higher session attendance of 70% from the free users. Having registered an impressive 220% growth with over 2 Million students attending live classes and teachers delivering a whopping 8 Million hours of classes, Vedantu is all set to stay as the bright new star of the ed-tech industry.
What does the future hold?
As specified in previous rounds of funding, the company is willing to expand into new categories such as tutoring for students from Kindergarten to Fifth class. We expect this to happen at an increased pace with the help of freshly acquired funds. “We are gearing to invest in the brand and are entering very strongly in new categories of age group 4-10 years beyond current customer segments”, Vamsi Krishna, co-founder and CEO of Vedantu said in a statement. Expectations are this startup will expand into more categories over the next few years.
While Vedantu seems to be on a high note with the influx of fresh funds, Coatue Group, through its Managing Director Rahul Kishore, has also declared their long term support. “Online learning adoption in India is at an all-time high setting a new benchmark for the rest of the world. As we continue to focus on driving high-growth ventures, our investment in Vedantu marks our entry into the Indian ed-tech market”.
Considering the recent situation, most of the ed-tech platforms like Vedantu, Unacademy, and Byju’s are witnessing growth in the new user base partly due to their offering free products. As mentioned by DataLabs in its recent report, the Indian ed-tech industry is expected to be worth $1.96 B by 2021. One can see a future that is headed towards more internet-based learning. Tech-savvy entrepreneurs are making the most of the demand and opportunities.