Vedantu, an online tutoring platform, has raised $11 million in a Series B funding round led by Omidyar Network, the company’s co-founder, Vamsi Krishna, said in an interview. The funds will be used for technology expansion and deeper penetration in tier 2 and 3 cities.
Accel Partners, an existing investor, also participated in the round. Vedantu, which means ‘knowledge network,’ is an online portal, where teachers tutor students in group and one-on-one sessions.
An hour’s group session costs Rs 50-150 and a private session costs Rs 300-600. “Our group sessions are doing very well in tier 2 and tier 3 cities. That is why a major amount of this funding will go into expanding in that market,” said Krishna.
Krishna, a graduate of Indian Institute of Technology-Bombay, founded the company in 2014 with Anand Prakash and Pulkit Jain. The trio previously co-founded Lakshya (now Lakshya Educare Pvt. Ltd) where they also taught. Lakshya, a brick-and-mortar coaching centre, was sold to MT Educare Ltd in 2012.
“Even though Vendantu is a four-year-old company, the idea was born while we were at Lakshya. We wanted to bring good teaching to every student, which would have taken a very long time in a brick-and-mortar setting. So we decided to sell Lakshya and develop the tech for our new company,” Krishna said.