Education technology (edtech) startup Cuemath, run by Cuelearn Pvt. Ltd, has garnered Rs 21.75 crore in what seems to be a mix of debt and equity from its existing backer Trifecta Capital, per a report by Entrackr.
The investment is a part of its ongoing Series B round. Of the total corpus, as much as Rs 13 crore has flown into the company in the form of debt, while the remaining Rs 8.75 crore constitutes equity.
Cuemath, headquartered in Bengaluru, is an after-school math excellence programme for kindergarten to Grade 8 children. It uses physical worksheets, quiz cards, along with other tablet-based content and targets students.
The startup operates on a micro-franchisee model, where local tutors sign up to conduct classes at their home.
The current investment comes in at a time when demand for home-based learning offerings from edtech firms has hit an all-time high amidst the COVID-19 pandemic.
Established in 2014, Cuemath garnered as much as $4 million in its Series A round in June 2016 from Unitus Ventures (formerly Unitus Seed Fund) and Sequoia India. Subsequently, in 2017, it started raising capital for its Series B round. After raising $15 million from Alphabet Inc and CapitalG (formerly Google Capital), it saw an additional funding of $5.45 million after a gap of two years in December 2019 from investors including Manta Ray Ventures.
The edtech sector in India has of late witnessed a spate of deals. Given that starting March, educational institutions in the country have been forced to remain closed due to the outbreak of coronavirus outbreak, consumers have been forced to embrace remote online learning. This, in turn, has resulted in the sector to witness a significant surge in investor interest.
Edtech unicorn Byju’s recently raised funding from Mary Meeker’s technology investment firm Bond, a backer of high-profile companies including Twitter and Facebook as it gears up to rake in a total of $500-600 million in fresh financing to expand its operations. Other Indian edtech startups that raised capital starting April include Vedantu, Pariksha, and Classplus and Flinto Learning Solutions.