Vedantu, A Bangalore-based startup that runs a learning app for students between 12 and 18 years old has received another $ 24 million as part of its Series C funding round to serve more students and make its brand a household name ,
The new series C infusion, which Vedantu unveiled last August, was led by the Chinese giant GGV Capital. Some existing investors also participated in the round. The $ 24 million expansion extends the five-year startup's Series C round to $ 66 million and the total increase to $ 82 million to date.
Vedantu offers a mix of recorded and live and interactive courses. Students who sign up for the interactive sessions have to answer questions every few minutes by tapping their smartphone screen or desktop. You can also express your doubts at the end of the session.
The startup, which looks after students in grades 6 through 12, offers users a large catalog of recorded sessions free of charge. Vamsi Krishna, co-founder and CEO of the startup, told TechCrunch in an interview that it generates revenue from the sale of subscriptions to live and interactive sessions.
The app has amassed over 75,000 paying subscribers, a number Krishna is expected to reach over 100,000 this year, he said. The cost of these subscriptions can vary from Rs 100 (USD 1.4) for students looking for sessions on a specific topic to Rs 50,000 (USD 700) for long-term courses that focus on training students for courses for students focus. In general, more than 25 million users visit the Vedantu app or website every month for free tuition.
India has the largest school-age population in the world and the country's households are ready to invest in their children's education to advance their lives. Every year, around one million students try to study in graduate courses every year.
However, the quality of education and its affordability are two major challenges that millions of students face each year, especially those who live in smaller cities. In an offline coaching center, up to 100 students can sit in the room, most of whom are unable to deal with a teacher. For many, however, this also means that there are not many teachers left to teach them.
A wave of technology startups has emerged in recent years to address these challenges as inexpensive Android phones flood the Indian market and mobile data prices are becoming incredibly affordable.
With Vedantu, students can interact with their teachers via the microphone and camera on their smartphone or desktop and via a chat box in the app. These teachers also have assistants who work with students on their doubts.
Since it is a virtual class, Vedantu can also accommodate more students in one session. A paid session can have up to 600 students, while free tuition could have 2,000, said Krishna, who is a teacher himself, and headed the Lakshya Institute, which helped students prepare for student courses by early 2014 before going a majority stake in Mumbai sold-based K-12 tutoring and exam preparation company MT Educare.
By operating a technology platform, Vedantu was also able to offer its subscription service more cheaply than a typical offline coaching equivalent, which can cost users between a few hundred and a few thousand dollars.