Tiger Global invests $50m in Indonesian edtech startup Ruangguru

Image from Ruangguru's website.

New York-based investment firm Tiger Global Management has injected $50 million in Indonesian edtech startup Ruangguru’s latest funding round. 

The funding marks the latest bet on a market with the world’s fourth-largest education system comprising over 50 million school students and more than three million teachers.

According to a filing with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) this week, Ruangguru raised nearly $55 million in the Series C2 round. Existing investor GGV Capital injected an additional $4.99 million in the Jakarta-based company.

The round, according to sources, pegged Ruangguru’s valuation at $830 million, up from around $540 million in its previous funding round in late 2019. It had last raised $150 million in a Series C round co-led by General Atlantic and GGV Capital, with participation from existing backers East Ventures, UOB Venture Management and a number of new investors.

DealStreetAsia has reached out to Tiger Global and Ruangguru for comments.

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 competes with Zenius, Pahamify, Quipper and CoLearn in the local market. 

Over the past year, the company has started rolling out additional products targeting corporates (B2B model), teachers and schools. It is also betting big on vocational training.

Ruangguru claims that, as of December 2020, it has served over 22 million users in Indonesia, which represents a 46% increase over the same period in the previous year.

Indonesia’s edtech players offer products and services to help students with learning and upskilling, educators with student management, communication and teaching, and educational
institutions with administration.

The market, which has over 60 players, has seen a surge in demand for online learning services after the COVID-19 pandemic forced schools and other educational institutions to remain shut. 

For Tiger, the Ruangguru deal marks its latest bet in Southeast Asia’s largest market. The US-based firm had previously backed Indonesian fintech company Payfazz.

With Ruangguru closing in on the $1 billion valuation mark, it is set to add to the long list of unicorns backed by Tiger Global – something the investment firm has built a reputation for, particularly through its investment in the Indian market.

As of today, Tiger has invested in a total of 21 unicorns in India, almost half of the billion-dollar startups that the country is home to. 

The investment firm is also known for its rapid speed of capital deployment, considered revolutionary in venture circles. Over the last week alone, it helped to produce four Indian unicorns by participating in investments in social network app ShareChat, business messaging platform Gupshup, investment app Groww, and fintech app CRED.

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.

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.