Live online tutoring platform, Vedantu, has raised $100 million (Rs 740 crore) in its 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, Westbridge among others. With this round of funding, Vedantu’s valuation is at $1 billion, underlining its status as a unicorn and one of the leading K-12 live online tutoring companies in India.
This latest round is expected to 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.
Challenging the status quo in India’s K-12 tutoring space, since its inception in 2014, Vedantu claims it has created several first-time innovations that include WAVE, its proprietary live teaching platform, and the 2-teacher model. Both these innovations are playing a big role in improving student outcomes for the company and some of the venture's innovations have been granted patents in the US.
Vedantu now wants to innovate further on the LIVE teaching format and penetrate deeper into the K-12 segment by reaching more students. The funds will be primarily used to strengthen product engineering functions as well as expanding into newer categories through both organic and inorganic routes.
Today, Vedantu offers tutoring courses to young students from 3-year-olds to 18-year-olds, 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 fast-growing vertical, SuperKids, it offers extracurricular classes like English Speaking, Reading, and Coding.
Vamsi Krishna, CEO and Co-Founder, Vedantu said, "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."
Sugandhi Matta, Chief Impact Officer, ABC World Asia, said, “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.”
Over 3.5 crore users access Vedantu through its app and web for free each month. Its YouTube channel gets 65 million views and students can 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 percent growth over the previous year. The venture claims this growth was accompanied by a revenue increase of 4.5 times 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.