Vedantu's current goal is to boost activations from tier 2 and beyond cities, aided by lowering the average price of its live tutoring classes
Edtech platform Vedantu has raised $42 million in fresh funding, led by New York-based Tiger Global Management and WestBridge Capital. The investment will enable Vedantu to popularize its online live tutoring sessions in small towns and cities across the country.
Existing investors Accel, Omidyar India and TAL Education also participated in the round, along with Prince Maximilian of Liechtenstein who is also the CEO of banking and asset management firm LGT group.
“Majority of this fund we are planning to deploy into building awareness about this category and our brand. Investments into our technology and platform will be the second pillar enabled by this round,” said Vamsi Krishna, cofounder and CEO.
Vedantu claims 15 million users access free content on its platform, while 150,000 pay for its live tutoring programme. The company said it currently recuperates the cost of acquiring a customer within a year, and is hoping that users extending their subscriptions over many years will drive profits.
The company’s current goal is to boost activations from tier 2 and beyond cities, aided by lowering the average price of its live tutoring classes, Krishna said. Almost 80% of users who access Vedantu’s free content are from tier 2 and smaller cities, while 55% of its paid users are in small towns.
“Vedantu has been the first to reimagine the concept of tutorials in the country and create an exponential shift towards the online LIVE Tutoring model. Vamsi and team are extremely focused on improving the educational outcomes of students using their unique online offering,” said Anand Daniel, partner at Accel Partners.
Including the latest funding, Vedantu has raised $58 million in total across three funding rounds. The investment comes at a time when India’s ed-tech space is seeing traction, with giants such as Byju’s achieving a valuation of $5.4 billion in its latest round.