Mumbai-based edtech startup Toppr has raised ₹245 crores ($35 million) in a series C round of funding from Kaizen Private Equity as well as existing investors Eight Road Ventures, SAIF Partners and Helion Ventures. Venture debt firm Alteria Capital and Times Group’s strategic investment arm Brand Capital also participated in the funding round.
Founded by Zishaan Hayath, the startup is catering to over 1.6 million registered students and helping them achieve their academic goals, Zishaan envisions making Toppr a leader in its space. With the freshly raised capital, Zishaan plans to aggressively infuse the funds in branding to take over Byju’s and increase its market share in the sector.
2017-2018 has been a booming phase for edtech startups in India. Startups like Byju’s, Unacademy, Toppr, UpGrad and Embibe has been lucky in receiving funds. Earlier in May, Toppr raised ₹15.5 crores in debt funding from Alteria Capital. It also bagged ₹45 crores in series B round of funding from SAIF Partners, FIL Capital Management and Helion Ventures.
With a team size of 29,000 online tutors, Toppr app has got decent traction and claims to have six million downloads and one million monthly active users. It has deployed an AI-enabled chat application for students that connect with experts instantly. Apart from the aforementioned startups, Toppr also competes with Onlinetyari, Meritnation including several others.
The Indian education market is expected to almost double to $180 billion by 2020, buoyed by the rapid expansion of the digital learning market and the world’s largest population in the age bracket of six to 17 years even as the sector continues to be plagued by poor infrastructure and a shortage of trained teachers.
According to a 2016 report by management consulting firm Technopak, India’s education market is valued at $100 billion currently while the digital learning market is estimated at $2 billion.
The digital learning market is expected to reach $5.7 billion by 2020 as the number of internet users is increasing. India’s internet user base is estimated to reach 550 million by 2020 with an approximately 40% penetration, a significant increase from the 35% currently, the report compiled in partnership with Simplilearn said.