Bengaluru-based edtech startup, IMAX Program, has raised $13.5 million from Michael and Susan Dell Foundation. The company further plans to use the investment to expand its customer base in India. The round also saw participation from Swiss venture firm LGT Impact and fellow Bengaluru investor Aspada.
IMAX claims to serve over 800 schools and over 300,000 students in India. It further offers textbooks, exam services, feedback and remedial services for students. To add more, it provides manuals and training modules for faculties.
“With this round, we will now further deliver a better experience for our customers and partners, and accelerate the expansion of our commercial operations in India,” said IMAX Program co-founder Varun Kumar.
He further added, “We will also be selectively looking at prospective markets abroad.”
Founded in 2009 by Varun Kumar and Naveen Mandava, the IMAX program aims to cater two million Indian students by 2020. India has enjoyed a state-sponsored explosion in school attendance since the Right of Education Act guaranteed universal education for 6-14-year-olds.
However a World Bank survey found average school attendance to be 15-30% lower than enrollments across India. And a number of teacher and exam scandals have placed greater scrutiny on education in the 1.33 billion-population democracy.
According to an ibef report, India is the second largest market for e-learning after the US. The sector is currently pegged at $ 2 billion and is expected to reach $ 5.7 billion by 2020. Moreover, the aim of the government to raise its current gross enrolment ratio to 30 % by 2020 will also boost the growth of the distance education in India.
Currently, the school segment is valued at US$ 52 billion and contributes 52 % to the education market in India, higher education contributes 15% of the market size, text-book, e-learning and allied services contribute 28 % and vocational education in manufacturing and services contributes 5 %.