NEW DELHI: Online tutoring platform, Vedantu has raised $100 million (Rs 750 crore) from Coatue, a leading US-based investment firm which pegged its valuation at $600 million.
Vedantu which offers live interactive classes for students across grades K1 to 12, saw its valuation rise by over $300 million as against the pre-COVID times. Bengaluru headquartered ed-tech firm now claims to be the second most valuable company in edtech space.
The Coronavirus pandemic has proved to be a boon for the edtech industry in India attracting funds from leading investors globally as well as within India. Edtech firm, Byjus has raised more than $400 million in 2020 alone at a valuation of $10 billion. Facebook backed Unacademy has raised more than $100 million this year. A majority of the edtech platforms have seen a record surge in the number of monthly subscriptions as well tractions.
Vedantu said that it has recorded a growth of 220% during lockdown with more than 2 million students attending LIVE classes and teachers delivering over 8 million hours of LIVE classes.
“During lockdown, everyone is talking about LIVE classes and it is the best time for us to drive more adoption and strengthen our brand as the best destination for LIVE classes. On top of adding new categories, we will use the funds to invest in content and technology to create the world’s best LIVE teaching-learning experience,” Vamsi Krishna, CEO, and Co-Founder, Vedantu said.
In a country where online education is still catching up, the infusion of funds provides the indigenous platforms to scale up their offerings and expand to the remote areas where the affordability factor plays a prominent role. Edtech startups including Byjus, Vedantu, and Unacademy are also actively looking to acquire smaller firms in the segment to consolidate their positions.
“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 EdTech market. This move underlines our strategy to partner with companies that are strategically positioned for high growth & scale. We are excited to partner Vedantu in their next stage of growth,” Rahul Kishore, Managing Director, Coatue said.