Mumbai: Mumbai-based education technology company Haygot Education Pvt. Ltd, which operates the Internet portal and mobile app Toppr, is looking to reach 1 million students by June next year.

On average it charges a student 5,000 for a yearly online preparation package so it would be looking to clock yearly revenue of 500 crore.

It currently has 500,000 students—a jump of 11 times in its user base from the previous year.

“We are looking to expand the test preparation services to the fifth, sixth and seventh grade students as well. These should be launched before the next academic year begins," says Zishaan Hayath, who founded the company with Hemanth Goteti in 2013. The online services have so far been available only for eighth to 12th graders.

The company, through the portal and the mobile app, aims to supplement school teaching practices. The entire content for the students is created by 3,000 people who include Indian Institute of Technology students, professors and teachers.

The Indian education market is pegged at $100 billion, with school education making up 38.1% of it, and pre-school, technology and multimedia 0.6%, according to IBEF, a research centre. Additionally, India’s online education market size is expected to touch $40 billion by 2017.

In India, ed tech companies have mushroomed in the space of competitive exam preparation or certification courses.

Companies backed by private equity and venture capital investors include Embibe (Indiavidual Learning Pvt. Ltd), iProf Learning Solutions, Meritnation and Paagalguy (Inzane Labs Pvt. Ltd).

While Toppr raised $10 million in a round led by Fidelity Growth Partners India in May, another start-up providing online tutorials for school students, Vedantu, raised $5 million from Tiger Global and Accel partners the same month.

“The K-12 ed tech companies will take about two years to mature and be the hot sector," according to Hayath.

Toppr plans to use the funds for improving the existing product and technology. It plans on adding features like video lessons and video lectures

“The challenge with the Indian K 12 education segment is that it is highly fragmented, each state has a different board, curriculum varies and so do teaching methodologies. This makes delivery of a standardised service very difficult. In addition to this school teachers are not well trained to handle technology," said Prashant Mehta, partner with Lightbox Ventures.