US-based Coatue Management led the round that valued the company at $600 million. This has made Vedantu among the most valued edtech startups in India.
Covid has certainly proven to be a great enabler for certain segments including edtech. As digital learning has picked pace during the current uncertain times, startups in edtech have found their eureka moment. Tutoring startup Vedantu on Thursday announced raising $100 million as part of its Series D round of funding led by US-based Coatue Management and participation from existing investors. Coatue’s managing director Rahul Kishore will join Vedantu’s board. The new round has now valued Vedantu at $600 million. The startup had earlier raised funding from Tiger Global, WestBridge Capital, Omidyar Network, Accel and more.
“Online learning adoption in India is at an all-time high setting a new benchmark for the rest of the world,” said Rahul Kishore, Managing Director, Coatue. This is the first investment by the fund in the Indian edtech segment.
Indian edtech market is currently led by Byju’s that is valued at $10.5 billion. Amid the expected market growth, Covid has likely provided the jumpstart to the sector. Since lockdown began in India in March, multiple edtech startups such as Illumnus, Ken42, Flinto, Edhusk etc have been able to secure capital from investors.
According to RedSeer, edtech market across grades one to 12 is likely to be $1.7 billion while post K-12 market is expected to become a $1.8 billion market by 2022. The majority growth in post-K-12 segment will be seen in higher education segment with 60 per cent market share followed technical skilling with 19 per cent share, 14 per cent by test prep for government jobs and only 7 per cent by test prep in other professions. The growth explosion in the edtech segment will be backed by affordable data, low-cost phones, growth of vernacular language apps and sites, and low-cost electronic payments infrastructure.