Edtech Startup Bhanzu Raises $16.5 Mn From Epiq Capital

SUMMARY

The Series B funding round also saw participation from Mumbai-based Z3Partners and existing investors Lightspeed Ventures and Eight Roads

Founded in 2020 by Neelakantha Bhanu, the startup offers a curriculum that helps students increase their proficiency in maths.

Besides India, the startup has presence in the US, the UK, and the Middle East

Amid the ongoing struggles of the edtech sector, Bhanzu has raised $16.5 Mn (around INR 139 Cr) in its Series B funding round led by VC firm Epiq Capital. The round also saw participation from Mumbai-based Z3Partners and existing investors Lightspeed Ventures and Eight Roads.

The startup will use the funds for further expanding its presence in the US.

Founded in 2020 by Neelakantha Bhanu, the startup offers a curriculum that helps students increase their proficiency in maths. It claims that the curriculum has been curated with over four years of data collection and research. Its AI-driven curriculum offers interactive programs and customisable learning to students.

Besides India, the startup has presence in the US, the UK, and the Middle East.

“The US maths education market has significant potential, but it is dominated by large, billion-dollar companies that have not innovated their curricula or effectively embraced technology. This gap creates a significant opportunity for Bhanzu to revolutionise maths education in the US,” founder and CEO Bhanu said on the new funding round.

The funding round comes more than two years after Bhanzu raised $15 Mn in its Series A round from global investment firm Eight Roads Ventures. The startup said that it has registered 8X growth since its last funding round, has positive cash flow, and a strong product-market fit across geographies.

The development also comes at a time when the Indian edtech space is struggling. BYJU’S, once the posterboy of the sector, is undergoing insolvency proceedings, while Unacademy was said to be mulling a merger or acquisition. The funding raised by Indian edtech startups plunged 88% to $283 Mn in 2023 from $2.4 Bn in 2022

However, amid sectoral headwinds, edtech unicorn Physics Wallah (PW) raised $210 Mn (about INR 1,756.7 Cr) in its Series B funding round, led by Hornbill Capital, at a post-money valuation of $2.8 Bn, in September.

In August, Bengaluru-based edtech startup Kreedo raised $4 Mn (INR 33 Cr) in its Series A funding round co-led by Heritas Capital and UBS Optimus Foundation.