With the rise in online education platforms, worldwide investors are becoming more confident in the online education system. When global crises have impacted other industries severely, it has boosted growth in the education industry.
The online education platform Vedantu has raised Series D round funding of $100 million, led by US-based investment firm Coatue along with a contribution from other active investors. The active investor is Rahul Kishore, Managing Director, Coatue, who will join the Vedantu board.
The Vamsi Krishna, CEO, and co-founder of Vedantu told BussinessLine that “Vedantu has always believed in the concept of live interactive classes being a superior format for online learning which creates greater learning outcomes. During the 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”- he said.
Vedantu is a Bangalore-based start-up that finally announced that it has raised $100 million funding, and this is the second round of funding, that this platform has achieved in the last six months. Before this funding, just five months back it has also closed a Series C funding.
With this funding, the U.S.-based Coatue connected with the Bangalore-based 6-year-old start-up Vedantu in a new financing round, with contribution from some active investors. The recent funding has made Vedantu the second most valued tech start-up in India. The company was valued $275 million in February this year funds, but with this new funding, it has now valued Vedantu at $600 million. This funding has certainly helped the company to achieve another goal.
The live online platform offers students various interactive courses in grades 6 through 12. As per Vamsi Krishna, co-founder and CEO of the Bangalore-based start-up said that online classes have gained huge recognition in current months, it has extended its catalog to serve up to grade five students from grade one.
While joining the courses on this platform, students have to answer the questions after every few minutes by tapping on their smartphone display or the laptop. This way, if students have any problem in the lesson, then they can raise questions at the ending of the session. The platform also offers some free class sessions to students, but a collection of it needs a subscription.
It is estimated, that Vedantu each month almost serves 25 million students, and from the past few months, the number has raised in millions as schools are closed across the country. Approximately the platform provides education to more than one million students each month. In the present scenario quality of education, and affordability are the two main concerns that students are facing, and this platform is fulfilling all the challenges and helping those living in smaller cities and towns.
To check that students are paying attention in their classes, Vedantu has built a patented system called WAVE through which it can assess more than 70 parameters, and identify their weaknesses.
For now, Vedantu is planning to use this funding in the extension of its education system by adding new categories in its online tutoring platform and help small-town students in smaller towns of India.