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.