Indian edtech startup Cuemath raises $2.9m in debt, equity: Report

Photographer: Xaume Olleros/Bloomberg

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.

DealStreetAsia last month reported about the company’s fundraising plans quoting its COO Govind Rajan.

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.