Bangalore-based ed-tech startup Vedantu is reportedly in advanced talks with New York-based hedge fund Coatue Management to bag $100 million to touch $600 million in valuation, the 2 officials aware of this matter has mentioned, requesting for anonymity.
If the deal goes as per plan, then the startup will double its valuation in just 3 months, driven by the COVID-19 pandemic that has boosted online education.
In 2011, Anand Prakash, Pulkit Jain, Saurabh Saxena, and Vamsi Krishna founded Vedantu, an online e-learning platform featuring real-time personalized learning. In the times of pandemic, the startup offers live coaching classes for K12 students. Alongside this, the startup also provides entrance exams preparation coaching such as NEET for medical colleges, IIT JEE Main and Advanced for engineering.
Vedantu also provides tuitions for ICSE, CBSE, and various state boards. The startup offers a package of study material with sample question papers, mock tests, revision notes, and previous year papers.
Since the inception, the startup has added around 1 lakh students monthly until February 2020, the startup has added 12-15 lakh students on its platform in the last 3 months alone. The coronavirus pandemic lockdown has brought all the students on the online platform to join the online classes.
In the last 1 year, Vedantu has been raised investment frequently. VC firm Accel, Tiger Global Management, GGV Capital, private equity firm Westbridge Capital, and Omidyar Network are among its prominent customers. A Chinese ed-tech firm, The Advanced Learning (TAL Group), and China-based venture fund Legend Capital are also among its investors.
According to the Entrackr report, a business news report has calculated Vedantu’s valuation at $280 million in April.
The US-based Coatue Management, which is leading the Vedantu’s funding round, is presently emerging as a prolific late-stage investor in Indian startups. It has invested in cloud kitchen firm Rebel Foods, food delivery firm Swiggy, and payments aggregator BharatPe in India so far. In 2018, Swiggy was its first Indian deal. It has also invested in a Chinese online tutoring startup, Zuoyebang, a similar platform to Vedantu.
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