Cuemath, a Google-backed edtech startup, has reportedly raised a Series C funding round worth $40 million. This funding round was led by Alpha Wave Incubation Fund and Lightstone Fund, as well as other existing investors such as CapitalG, Manta Ray Ventures, and Sequoia.
Sources familiar with the matter have stated that the edtech company has passed a resolution to allot 144,618 Series C CCPS and 200 equity shares at the issue price of ₹20,518.56 ($278.52) per share to raise the funding.
In the recent round, Lightstone Fund has reportedly made an investment of ₹126.3 crore ($17.1 million), while Alpha Wave Incubation Fund invested ₹111.43 crore ($15.1 million). The investment happened a year after Cuemath raised an extended Series B round of $5.5 million led by Manta Ray Ventures.
For the uninitiated, the Bengaluru-based company offers technology-driven, after-school learning programs for students in Classes 1 to 10. The company is also known for offering coding lessons and presently has 5,000 franchises in India. Its tutors are based in cities including Mumbai, Kolkata, Delhi-NCR, Hyderabad, Chennai, and Bengaluru. The classes have currently been shifted online due to the ongoing COVID-19 pandemic.
The latest funding round happened amid a significant rise in demand for online classes as colleges and schools continue to remain closed. Various edtech companies have also been expanding organically during the pandemic due to accelerating Internet penetration.
However, the pandemic has posed several challenges for companies that are reluctant to embrace technological innovation. In the light of the rising disruptions caused by the coronavirus outbreak, multiple edtech firms have been raising capital to serve the needs of more audiences, expand their presence, as well as enter new markets. As per reliable reports, the country’s edtech market is expected to witness significant gains in the coming years, as online learning for Classes 1 to 12 are likely to increase 6.3x by 2022.