Vedantu, founded in 2011 by Vamsi Krishna, Pulkit Jain Saurabh Saxena, and Anand Prakash, is now another edtech company successfully achieving unicorn status after raising $100M in Series E fundraising backed by ABC World Asia of Singapore. It is also the fifth Indian edtech startup to reach this milestone. Existing investors such as Coatue, Tiger Global, GGV Capital, and WestBridge also participated heavily in the round.
Now, this Online tutoring platform is planning to widen its learning section, making it available from Kindergarten to 12th grade. While also trying to expand worldwide and diversify its extracurricular course offerings. Vedantu’s inclusion in India’s unicorn stable reflects the country’s edtech sector’s sustained investment vigor. Eruditus and upGrad, two higher learning and upskilling portals, also joined India’s unicorn club this year. Whereas, Byju’s and Unacademy over the last year have nearly doubled their valuations.
In an interview with VOE team, Vamsi Krishna mentioned that Vedantu was able to maximize its revenue growth even before the pandemic. Even when the schools started to open, they experienced registration by the students and were able to triple their critical indicators in the last three years and expect this trend will continue in the future. He also shared that they will focus on the K-12 segment since this segment’s online invasion remains at just 5%, there is plenty of space for growth.He also shared that they are for now also exploring West Asia and Southeast Asian places, as per their plan to make an entrance in international markets in 12-5 months.
Vedantu offers different class courses for young minds from the age of 3-18 years old and also provides preparation materials and help for the competitive exams like JEE, NEE, Boards exams, ICSE, and state exams. Now, they are also planning to launch courses for the Indian language on their platform.
Vedantu earning the unicorn status, Krishna comment over their achievement was “While unicorn statuses are consequences and though an important milestone, but what I am really proud of is a million students learning online and edtech becoming mainstream. I remember my first live class in 2014, and in those days, it wasn’t considered viable. We want to create a company that outlasts our lives and continues to innovate for decades to come.” Krishna also shared about the company’s revenue details, in which 55%-60% revenue comes through live tutoring and 30%-35% coming through test preparation, contributing to their overall revenues. He also added that introducing WAVE, its special LIVE teaching classes, and the 2-teacher model have helped them to improve student experience online and gave the company positive results.
In the United States, some of the company’s innovations have been given patents. By reaching more students, the company hopes to continue to innovate on the LIVE teaching style and expand deeper into the K-12 area. On Vedantu’s growth and plan, Sugandhi Matta, the Chief Impact Officer of ABC World Asia, said, “Vedantu embodies our investment themes of providing better access to quality education and using digital technology to improve lives and livelihoods. In India, online education has the potential to extend the scope of ‘Right to Education’ to students in the underserved community and capture the ‘Next Half Billion’ income group, representing over half of the country’s student population.”
Vedantu is estimated to have over 35 million monthly users who access it for free via its app and website. Its YouTube channel, which is most popular among K-12 students, gains 65 million views. Vedantu is also available to students via specialized channels on Airtel TV and TATA Sky. Last year, Vedantu served over 200,000 paying students, a 300 percent increase over the previous year. This expansion was complemented by a 4.5x rise in revenue from the prior year.