Indonesian edtech startup Ruangguru has announced closing a $150-million Series C funding round co-led by global investment firms General Atlantic and GGV Capital, with participation from existing backers EV Growth, UOB Venture Management and a number of new investors.
Earlier this month, DealStreetAsia reported that Ruangguru was raising around $100 million for its Series C round led by General Atlantic.
The deal represents the biggest round secured by an edtech company in Southeast Asia, and is set to “strengthen Ruangguru’s position as a leader in the education technology sector,” the company said in a statement.
The fresh injection of capital will be used to support Ruangguru’s product development and expansion in Indonesia and Vietnam.
Ruangguru was launched in 2014 as an online marketplace for tutors by Muhammad Iman Usman and Adamas Belva Syah Devara. It has since evolved to offer its own learning management system as well as learning video subscriptions, and online exam simulations, catering to almost every K-12 education vertical.
It currently claims to serve over 15 million students and manage 300,000 teachers.
Having established itself as one of the leading edtech players in Indonesia, the company expanded to Vietnam this year under the brand ‘Kienguru,’ after securing an unspecified amount in a Series B funding round led by UOB Venture Management.
With the latest investment from General Atlantic and GGV Capital, Ruangguru joins a growing network of education-focused portfolio companies for both firms.
Among the education players in General Atlantic’s portfolio are Byju’s, Hotmart, Arco, Open Classrooms, dan Little Golden Star, while GGV Capital has invested in several edtech companies like FengBian (风变), HuoHua (火花), ZuoYeBang (作业帮), XiaoBu (小步), Lambda School, and LiuLiShuo.
General Atlantic opened its Jakarta office in December 2018. The deal marks General Atlantic’s second investment in Indonesia, after PT MAP Boga Adiperkasa, a leading food & beverage retailer.
“We look forward to leveraging experiences from our global portfolio, particularly in technology-enabled education in emerging markets, to help fuel Ruangguru’s continued expansion,” said General Atlantic managing director and Indonesia director Ashish Saboo. He will be joining Ruangguru’s board of commissioners.
Ruangguru co-founder and executive director Belva Devara, who a few months ago was appointed to join President Joko Widodo’s group of special staff, said: “We believe both firms understand our vision of building a significant education business in the region that supports a larger purpose, and we expect the partnership to help us accelerate our mission.”
Going forward, the company says it will focus on building a comprehensive curriculum and delivering AI-driven personalised classes.
Other edtech startups in Indonesia that have been successful in raising multiple funding rounds include HarukaEdu, which last month secured an unspecified amount of Series C financing led by US-based global trading firm SIG, with participation from AppWorks, GDP Venture, and Gunung Sewu Kencana.
In October, there was a buzz in the market about a new contender in the country’s edtech space called Zenius Education, which is said to be in talks with private equity firm Northstar to lead a $20-million first external round of funding for the company.
Incidentally, Northstar is also an investor in Ruangguru’s main competitor in Vietnam, Topica Edtech. The firm invested $50 million in Topica’s Series D round late last year, which at the time counted as the biggest funding secured by an edtech company in Southeast Asia.