Indonesian edtech startup Ruangguru is said to be securing fresh funding to the tune of $100 million, according to multiple sources aware of the development.
DealStreetAsia understands the latest round is being led by General Atlantic, and some of the startup’s early investors, including Venturra Capital, are likely to participate in the financing.
In July, we had reported that Ruangguru had secured funding from investors including UOB Venture Management and East Ventures, which brought the company’s valuation to $100 million.
The latest funding is likely to bump up Ruangguru’s valuation to over $500 million.
Ruangguru said it does not comment on rumours, while General Atlantic said it had no comment to offer for this story.
Sources say SoftBank Group Corp was interested in leading this round of funding but may have decided against doing so owing to recent issues with its portfolio companies, notably WeWork.
Ruangguru was set up in 2014 by Adamas Belva Syah Devara and Muhammad Iman Usman, and helps elementary, middle and high-school students in Indonesia find private tutors online. It also offers its own learning management system as well as learning video subscriptions, and online exam simulations, catering to almost every K-12 education vertical.
It also has plans to expand outside of Indonesia, which the fundraising will likely support.
General Atlantic is also an early investor in Indian edtech unicorn Byju’s, which has plans to expand to other markets with high demand for English tuition services. The Indian unicorn produces and runs learning apps for school students, and is considered the best-funded and highest valued edtech startup in the country.
In March this year, Byju’s had raised $31 million from General Atlantic and Tencent Holdings, another existing investor. After the last round of funding, estimates put the company’s valuation at over $5 billion.
The education sector in South and Southeast Asia is increasingly becoming one of the most attractive sectors for investors across the private equity industry.
In October, Blackstone Group announced an investment in India’s Aakash Educational Services. According to media reports, the PE major picked up around 37.5 per cent stake in Aakash at a valuation of over $500 million.
In Vietnam, Kaizen Private Equity invested $10 million in YOLA, an English and test prep organisation backed by local firm Mekong Capital, this year. Other recent education investments in the Southeast Asian country include TAEL Partners’s investment in IvyPrep, Northstar Group’s $50-million funding for Topica Edtech and Navis Capital’s investment in Thanh Thanh Cong Education.
DealStreetAsia will update this story as more details become available.