Klassroom Edutech, a Mumbai-based startup operating in the education technology sector, has successfully completed a Pre-Series A funding round. The funding, although not disclosed in its entirety, was spearheaded by ah! Ventures and included contributions from LetsVenture, Hem Securities, Meteor Ventures, and Growth Sense Fund. This funding round forms part of a total of over $1.5 million that Klassroom has raised in various rounds to date.
The funds will be employed to accelerate growth by enhancing AI-driven technologies, refining content creation, and strategically expanding into new geographic territories. Klassroom has articulated its intent to increase its presence in southern Indian states such as Karnataka, Telangana, and Andhra Pradesh, alongside targeting the northeastern region and international markets including the US, UAE, and Singapore. The startup currently operates in states including Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Madhya Pradesh, Goa, Gujarat, and Delhi.
Klassroom Edutech was founded in 2016 by the mother-and-sons trio of Alka, Dhruv, and Dhumil Javeri. The company focuses on providing an innovative hybrid education experience that combines online content through an OTT platform with offline learning centres. It has also established a network of over 200 offline learning centres, servicing more than 500,000 students across 600 cities. Besides catering to K-12 education, Klassroom offers a test preparation vertical for competitive exams such as IIT-JEE, CA, and CS.
Suniel Shetty, a well-known Bollywood actor and entrepreneur, is one of the notable investors, contributing to the startup's mission through the Suniel Shetty Scholarship Scheme. Speaking to the publication, Amit D Kumar, senior partner at ah! Ventures, noted that education is a pivotal sector, expressing confidence in the upcoming achievements of Klassroom. Similarly, Pranav Mahajani from LetsVenture praised Klassroom’s hybrid model, believing it effectively addresses significant challenges in education accessibility, affordability, and accountability.
The startup’s OTT app has reported impressive adoption rates, achieving over 50,000 subscribers within its first year. The app presents a broad learning ecosystem that encompasses academic subjects, skill training for industry employment, language learning, and various career courses. Alka Javeri highlighted that their offerings are in alignment with the National Education Policy (NEP) 2020, aiming to provide students with comprehensive and holistic learning experiences.
Klassroom has demonstrated notable financial performance, claiming to provide its investors with a sevenfold increase in wealth over three years. The cofounders indicated that the startup is currently 35% EBITDA profitable and 20% PAT profitable. Furthermore, the company is planning a Small and Medium Enterprises (SME) Initial Public Offering (IPO) in the near future, although specific details about the IPO have yet to be disclosed.
In addition to its ambitious expansion plans, Klassroom has recently signed a Memorandum of Understanding (MOU) with the Government of Rajasthan aimed at delivering skill development courses to an estimated 300,000 students across 3,000 schools.
The broader edtech sector in India appeared vibrant in 2024, with startups in the space raising over $568 million, a considerable increase compared to the previous year despite a 38% drop in deal count. However, forecasts suggest potential challenges ahead, with an anticipated decrease in funding by 33%, down to $400 million. Yet, the report indicates a resurgence in investor interest, particularly in innovative sectors like AI-driven tutoring and gamified education platforms, suggesting that while obstacles may arise, opportunities in the field continue to evolve.
Source: Noah Wire Services