Mumbai-based education technology startup Toppr said on July 29 that it had raised Rs 350 crore ($46 mn) in a Series D funding round led by Foundation Holdings, a Dubai-based investor. This fresh funding takes the total to around Rs 700 crore, which the edtech company has raised so far.
This latest funding is inline with the funding trend of edtech startups during the COVID-19 pandemic. The space has seen an investment of hundreds of millions during the pandemic. Edtech startup Vedantu raised $100 million in July, making it the second-most valuable online education startup in India after Byju’s. This is largely due to the coronavirus lockdown, which has led to the students using online learning tools more than ever.
Education-focused private equity fund Kaizen, which had earlier invested Rs 14.9 crore also participated in this round. Toppr also has SAIF Partners, Eight Roads Ventures and Helion Ventures among its investors.
According to the company, the new series of funding will be used to improve its adaptive AI-based Toppr school operating system and launch new platforms for coding.
Toppr was founded in 2013 by IIT Bombay alumni Zishaan Hayath and Hemanth Goteti. It is an after-school learning app, which uses AI, machine learning, and big data to study student behavior. It uses these results to create adaptive learning paths with infinite combinations; ensuring that every student has a unique and personalized learning experience.
According to DataLabs By Inc42, Indian online learning market is expected to be worth $1.96 Bn by 2021. According to the report, before Covid-19 lockdown, seven out of 10 top edtech players were focussed on school-level online learning. Vedantu, LearnCBSE, Byju’s, Toppr, Tiwari Academy, Meritnation and Gradeup collectively captured 51.25% of the traffic share.
However, in the 28 days post-lockdown, the traffic share shifted towards MOOC platforms like Udemy (17.81%) and Coursera (10.10%) and Toppr (8.81%).
Toppr operates four products and services that are aimed at K-12 students. The Learning app, Toppr’s marquee service, offers students live classes and sessions to clear doubts, pre-recorded lessons and tests.