Tiger Global Management and WestBride Capital leads a fresh funding round for $42 million (approx ₹287 crore) in edtech startup Vedantu. While, other investors in the round include Accel, Omidyar India, TAL Education Prince Maimilian of Liechtenstein.
The Bengaluru-based startup will use the infused funds towards building awareness about the category and the brand, and in its technology operations.
“Vedantu has been the first to reimagine the concept of tutorials in the country and create an exponential shift towards the online LIVE Tutoring model. Vamsi and team are extremely focused on improving the educational outcomes of students using their unique online offering,” said Anand Daniel, partner at Accel Partners.
Vedantu was founded by Vamsi Krishna, Pulkit Jain, and Anand Prakash in 2014. The platform enables students to learn through personalised teaching courses. It uses artificial intelligence (AI), machine learning (ML) and big data to refine its personalised teaching model.
The startup claims to have more than one-million hours of live teaching every month, catering to 40,000 students.
The company said that it currently recuperates the cost of acquiring a customer within a year, and is hoping that users extending their subscriptions over many years will drive profits.
The platform also aims to boost activations from tier 2 and beyond cities, aided by lowering the average price of its live tutoring classes.
Furthermore, the company claims it has been growing at 30% month-on-month for the last six-seven months.
Some of the significant startups in the similar space include BYJU’s, Unacademy, Simplilearn, Toppr, Meritnations and many more.