Google-backed edtech startup Cuemath has raised $40 Mn in Series C funding led by LGT Lightstone Aspada and Falcon Edge-managed Alpha Wave Incubation. Existing investors Sequoia Capital, Google’s investment arm Capital G and Manta Ray also participated in the round.
In September this year, Inc42 had reported that the Bengaluru-headquartered startup was reportedly in talks to raise $45 Mn funding in Series C round from Falcon Edge India.
Cuemath had raised $5.4 Mn in its Series B round last December, led by Manta Ray Ventures, with participation from Google and Sequoia.
Cuemath issued a little over 144,000 shares at INR 20,518 each to raise INR 297.1 Cr, according to regulatory filings sourced from business intelligence platform Tofler.
The company was founded in 2013 by Khurma and Jagjit Khurma. It provides after-school learning programmes for mathematics and uses physical worksheets, quiz cards with other tablet-based in-house content.
It has nearly 5K franchises in India, and has conducted over 25 Mn classes for over 10K students. It had also launched a digital platform Cuemath LEAP for students in grade 7-10. Cuemath Leap claims to have noted a four-fold growth in the last six months, giving 500K hours of live classes.
According to Inc42Plus, The Future Of Edtech In India: Decoding The $10 Bn Market Opportunity Report, 2020, India’s edtech market is estimated to grow 3.7x in the next five years, from $2.8 Bn (2020) to $10.4 Bn (2025).
Cuemath’s fundraise comes at a time when India’s edtech sector has seen a significant inflow of capital led by market leader Byju’s raising close to $1.2 Bn, followed by Unacademy which raised over $150 Mn and Vedantu, which has raised over $100 Mn, this year.
Entrackr, which first reported the investment in Cuemath, estimated the company’s valuation at around $170 million.
Cuemath said it had delivered over 25 Mn classes to over 100,000 students across geographies, including the UK, US, UAE, Singapore, Canada, Thailand, Indonesia, Egypt, Nigeria, India, Nepal and Bangladesh.
The company claims that it had seen a significant increase in signups for its web-only learning platform Cuemath Leap because of the disruption brought on by the Covid-19 pandemic.