Yangon-based Digital Royal Net Solutions Co Ltd, creator of a school management software, has raised $60,000 seed investment from a local investor allowing them to expand their market and user base.
The undisclosed investor, who is engaged in diverse businesses, secured 10 per cent stake in over-one-year-old tech startup, the maker of ‘E-School’, a software that allows schools and parents to view the timetables, exam results and attendance on a smartphone.
Digital Royal Net, ex-winner of Seedstars Yangon, is founded and led by Phone Pye Oo, CEO and Moe Hein Kyaw, CTO. The team of 15 has already generated a revenue of about $30,000 for 2017-18 school year.
The startup is looking to raise an additional sum of $120,000 to expand to Shan state and Sagaing region. They currently operate in Yangon, Mandalay and Nay Pyi Taw.
The startup targets private high schools and is looking to add 20 more schools to its current portfolio of 12.
“We expect to capture over 10,000 users (parents) in this academic year,” said Oo, talking about the number of sales for their software seen soaring to 7500 from about 700 in 2016.
“Parents have shown huge interest due to the ease and timeliness in viewing their children’s grades, attendance, exam timetable and other timetables just on their mobile phone,” said Oo during an interaction with DEALSTREETASIA.
This makes them to think about another business model of providing a free service to public schools and think about the most suitable revenue model for the millions of user base they aim to capture through the pubic schools.
Although the startup managed to meet the investor community in Switzerland following its Seedstars win, it failed to secure any funding due to lack of interest (from the investor set at that time) in an entity based in Myanmar. Till it raised the recent seed round from local investors earlier this year, the startup self-funded its business.
Their app is sold to private high schools charging K850,000 ($622) per year and to the parents, for K3000 ($2.2) per year.
“We expect to break even around next year as we anticipate to capture more of the Mandalay market,” said Oo.
Some of the well-known private high schools already using their E-School software include Pyinnya Pandaing in Nay Pyi Taw, CAE, KMC, Min Myanmar and Myo Nyunt in Mandalay and ICEC, Thiha, Aung Kaung San in Yangon, all of which has over 1,000 students enrolled.