Westbridge-Backed Sunstone Raises $35 Mn To Launch New Undergraduate Programs

Edtech startup Sunstone has secured $35 Mn in its Series C funding round led by Westbridge Capital along with participation from Alteria Capital. 

Sunstone plans to use the fresh funds to launch new undergraduate tech programs on its platform.

Adding the current fundraising, Sunstone has raised a total of $67.7 Mn funding so far. 

“Over the last year, we have seen Sunstone grow and continue to upgrade the quality of education provided to every student. Seeing its potential to be a major disruptor, we are excited to double down our investment to support its mission of transforming the higher education sector in India,” said Sandeep Singhal, managing partner of Westbridge Capital.

Founded in 2019 by Ashish Munjal and Piyush Nangru, the Delhi-based B2B edtech startup partners with academic institutions to offer undergraduate and postgraduate courses to students. Some of the courses offered on its platform are BBA, BCA, BCom, MCA and MBA, among others. It follows a pay-after-placement business model and thus, offers training programs to students post completion of their studies. 

Sunstone claims to have partnered with over 40 institutions in 30+ cities across the country. 

“The Indian higher education system is at the brink of a long overdue transformation. Sunstone is well positioned to enable this change and impact the lives of millions of students. Over the years, we have made significant strides in the direction but still have a long way to go as the market opportunity and problem we are trying to solve for, is very large,” Munjal said. 

Founded in 2019 by Ashish Munjal and Piyush Nangru, Sunstone is a Delhi-based B2B2C edtech startup. It partners with academic institutions to offer undergraduate and postgraduate courses to students. Besides this, it also provides training programs and placement services to these enrolled students post completion of their studies. Some of the courses offered on its platform are BBA, BCA, BCom, MCA and MBA, among others. 

Sunstone also asserts to have recorded 10x growth in the last two years. It also aims to expand its geographical footprint to 100 Indian cities.

In October 2021, Sunstone secured $28 Mn in its Series B funding round from Westbridge  Capital, Saama Capital, Alteria Capital and Work10m fund. Prior to this, it bagged about $3.2 Mn) in its Series A funding round in 2020 and then in 2019, it raised nearly $1.5 Mn in seed funding. 

In the Indian edtech sector, which is likely to become a $10.4 Bn market by 2025, Sunstone competes with the likes of UpGrad, BYJU’S and Unacademy. 

On the flip side, the country’s edtech sector is facing unprecedented challenges since the beginning of 2022. Funding winter, low market sentiment, geopolitical tensions, market inflation and impending economic slowdown are some of the challenges that the edtech startups are grappling with. 

To tackle these problems, the edtech startups have adopted cost-cutting measures including downsizing their businesses, laying off employees and pivoting business models, in turn, foraying into offline space. 

According to an Inc42 analysis, more than 11,360 employees have been sacked by the edtech players to date. Meanwhile, a few edtech startups–Udaay, Crejo and have closed shutters permanently. 

Recently, BYJU’S was reported to be sharing its financial statements this week. The edtech giant had earlier announced that it would roll out its financial statements on 15th August. 

Amid this doldrum, PhysicsWallah managed to acquire edtech startup FreeCo for an undisclosed amount. 

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