Edtech startup Vedantu enters unicorn club

Vedantu, an edtech start-up, has raised $100 million in a new funding round headed by ABC World Asia, a Temasek-backed impact investing fund. Existing investors such as Coatue, Tiger Global, GGV Capital, and WestBridge Capital also contributed to the funding.

Vedantu’s worth has risen to $1 billion, up from roughly $600 million when it secured $100 million from Coatue last year. Vedantu joins the likes of Byju’s, Unacademy, Eruditus, and upGrad as the 28th Indian unicorn so far this year. Temasek led fundraising rounds in both Unacademy and upGrad recently.

The round has not been completed yet, according to Vedantu, and additional investors are likely to join in the following tranches. A further, $10-$20 million might be added to the current round at the same valuation.

The edtech firm provides individual and group sessions across K-12 and test preparation. It provides CBSE, ICSE, and state board students with online coaching classes.

Vedantu plans to use the fresh funds to enhance its core business, as well as expand internationally. It also plans to include vernacular languages in its tutoring. According to CEO Vamsi Krishna, it also wants to introduce tutoring solutions for Grades 1-5 in the future.

“In the next two years, we’re going to put a lot of emphasis on vernacular languages. Over the following 15 months, we’ll also take a hard look at foreign expansion. We’re looking at markets such as the Gulf Cooperation Council (GCC) countries, Southeast Asian markets, Europe, and others,” Krishna told the media.

Its platform is used by over 35 million students, and it expects roughly half a million students to pay for it this academic year. It had roughly 200,000 paying users in the previous academic year, which was also a threefold increase.

Vedantu will use both organic and inorganic means to expand its operations. The money raised will also be used to boost functions such as product engineering and others.