Bengaluru-based online tutoring startup Vedantu has raised $42 million in a fresh funding round led by New York-based Tiger Global Management and WestBridge Capital. Existing investors Accel, Omidyar India and TAL Education also participated in the round, along with Prince Maximilian of Liechtenstein.
The funds will be used towards building awareness about the category and the brand. The company will also invest in its technology operations. Prior to this round, Vedantu has raised $19.9 million, with an $11 million funding round led by Omidyar Network last year.
Founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, Vedantu is an interactive online tutoring platform where teachers provide tuitions to school students over the internet, using a real-time virtual learning environment named WAVE, a technology built in-house. The company reportedly claims to have 15 Mn users of which 150K are paid users for its live tutoring programme.
The company reportedly 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.
“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.