NxtWave, a Hyderabad-based ed-tech startup claims to have secured $33 million in Series A funding during March 2023. The platform asserts that its business has clocked a 10 fold growth in CY2022 and has made significant progress during that period, Rahul Attuluti, CEO, co-founder, NxtWave, told FE Education. “We’ve operated with a traditional business approach, emphasising unit economics, cash flow and profitability. We’ve been fortunate to count Orios Venture Partners, an early stage venture capital fund in India, as our initial investor. Likewise, our current investor, Greater Pacific Capital, aligns with our philosophy and values this prudent approach,” he said.
The company which started its operation in April 2020 posted a 3.5x increase in revenue from operation to Rs 30.34 crore in FY22 from Rs 7.16 crore in FY21, as per regulatory filings accessed by business intelligence platform, Tofler. Its net profit rose 6,860% to Rs 2.60 crore in FY22 from just Rs 3.74 lakh in FY21.
The company asserted that it has not only helped individuals secure job placements in tech companies but has also aided more than 1,500 companies in meeting its talent needs. From a financial perspective, NxtWave stated that it has maintained positive cash flow from the very beginning. Although the company has secured venture capital funding in previous rounds, it has chosen not to deploy these funds and instead has been accumulating cash reserves. “The latest funding round was raised with the intention of maintaining an adaptable approach in the market,” Attuluti said.
NxtWave’s core mission revolves around delivering outcome-driven training for software careers. The company seeks to extend its reach to learners hailing from various backgrounds and underserved communities. This objective is achieved through the provision of learning materials in vernacular languages and by catering to learners residing in tier-2, tier-3 and tier-4 cities. “NxtWave’s overarching goal is to offer affordable digital learning solutions, thereby ensuring that high-quality education is accessible to all, regardless of their geographical location or proficiency in the language,” he explained.