Educational technology companies have been on a roll since the beginning of this year, and the pandemic has multiplied their adoption. Following Byju’s, Unacademy, Toppr, and Vedantu, Cuemath has now managed to raise Rs 297.1 crore or $ 40 million in his Series C round co-led by Lightstone Fund (LGT Lightstone Aspada) and incubation of Falcon Edge alpha waves.
The new round for the Bengaluru-based firm has arrived after a year. Last December, Cuemath had raised $ 5.5 million in an extended round of Series B led by Manta Ray Ventures. In September, Enter had exclusively reported that Cuemath was in late talks with Alpha Wave Incubation (AWI) to raise $ 40 million.
Cuemath passed a special resolution to allocate 200 equity shares and 144,618 Series C CCPS at an issue price of Rs 20,518.56 per share to increase the amount. Lightstone Fund has invested Rs 126.3 crore followed by AWI which pumped Rs 111.43 crore, regulatory filings show.
Existing investors, Google’s venture capital fund Capital G and Sequoia, have also invested at Rs 37.14 crore and Rs 7.42 crore respectively. The educational technology firm has also raised Rs 14.86 crore from Manta Ray Ventures in this round.
Cuemath offers math classes after school and uses physical worksheets, test cards with other internal tablet-based content. With 5,000 franchises in India, Cuemath claims to have taught 25 million classes for more than 100,000 students in the country.
the firm has also launched a Cuemath LEAP digital platform for children in grades 7 through 10. According to the company, its digital platform has quadrupled in the last six or eight months and has more than 500,000 hours of live classes.
According FintrackrCuemath’s post-money valuation is estimated to have reached around 1,265 million rupees or $ 171 million in this transaction.
The new earnings are crucial for Cuemath who did not raise back-to-back rounds like his peers Byju and Unacademy. The round is likely to help the company double its growth and develop strong technology capabilities.
The coronavirus pandemic has brought a massive shift in learning habits and triggered a hockey stick-like demand curve for educational technology solutions in India. As a result, venture capitalists and big investors around the world have been lining up to fund local educational technology companies.
While Byju’s had managed to raise more than $ 1.2 billion in 2020, Unacademy had reached $ 2 billion in valuation in November. Vedantu, ClassPlus, Toppr also scored sizable rounds in the current calendar year. According to Entrackr’s Sources, Vedantu and ClassPlus are in conversation with new and existing sponsors to discuss follow-up rounds.
