• The amount of the Magic Crate funding remains undisclosed
• 3one4 Capital also participated in the funding
• The startup will use funds to develop its new product line
Bengaluru-based education startup Magic Crate has raised an undisclosed amount in its third round of funding led by FireSide Ventures. Magic Crate’s existing investor 3one4 Capital was also a part of the funding round.
Magic Crate was launched in 2015 by IIT-IIM alumnus Viswanathan Ramakrishnan and ex-McKinsey consultant Karthik Lakshman.
The startup provides an inquiry- and play-based programme for early childhood learning at home. It offers a subscription-based service that produces and delivers hands-on activities for children belonging to the age group of 1.5-13.
The activities are designed by a team of early childhood experts and product designers to be educational and also entertaining. Children get the chance to explore new areas such as space or rainforests, which are mostly in their line of interest.
Magic Crate will use the funds to develop a new range of products, market the brand, and to grow the sales channel.
It had earlier raised funds from the Mohandas Pai-backed Aarin Capital in February 2016.
Vishwanathan Ramakrishnan, co-founder and CEO, Magic Crate, said, “Research shows that about 80% of critical brain development happens before the child turns eight. This has a direct correlation with what they are exposed to, during those years. Magic Crate is solving this pain point for millions of busy, but well-intentioned parents.”
The startup claims to have shipped over 5 Lakh crates till date and is witnessing a growth of 100% Y-o-Y. It is on track to touch over 70K shipments per month by March 2019.
Karthik Lakshman, co-founder and COO, Magic Crate, said, “Magic Crate has been unit profitable for over a year with 50%+ gross margins. With this business vertical scaling well with strong unit economics, We are now working on launching exciting new products to our customer base and this funding round helps accelerate our efforts.”
Magic Crate subscription boxes include construction sets, activity sets, math and science kits, DIY craft kits, play doughs, and more. These kits intend to educate or instruct and promote intellectual development of a child. They further help children to develop a certain skill or teach them about a subject.
According to the latest market study — Global Educational Toys Market 2017-2021 — by market research firm Technavio, the global educational toys market is expected to grow at a CAGR of close to 10% until 2021.
Other startups offering similar services in subscription ecommerce segment include Xplorabox, Podsquad, Butterfly Fields, Genius Box, Einstein Box, Flintbox, SP Robotics Work, Canary Crate, Small Brown Box, and more.