BENGALURU: Edtech startup Toppr has raised $50 million ( ₹350 crore) in a Series D funding round led by global investment firm Foundation Holdings. Other long-time partners including Kaizen Private Equity also participated in round.
Zishaan Hayath, Toppr CEO and co-founder, had said recently that the company was in talks with new investors to raise capital to launch two new platforms for Coding and Schools. .
“...This investment will further help to develop the AI-based Toppr School Operating System (OS) - a ground-breaking platform for schools to run digitally unifying in-school and after-school learning to create a standardized and personalized experience," Zishaan Hayath, Toppr CEO and co-founder, said.
Toppr had raised $60 million in December 2018 as part of its Series C, led by Kaizen PE, along with existing investors Eight Roads Ventures, Helion Ventures and SAIF Partners.
Till date, Toppr has raised around $110 million ( ₹700 core), the company said.
With this round, Toppr joins bigger edtech players that have successfully raised capital despite the covid crisis. Byju’s raised about $100 million from US technology investor Bond in May, while Unacademy raised $110 million from Facebook and General Atlantic in February.
Foundation Holdings is a global investment firm that has led successful IPOs across the New York Stock Exchange, London Stock Exchange, Australian Stock Exchange and the Dubai Financial Market.
“Our objective is to work with Toppr to further cement its leading position, enhance its quality offerings and substantial growth prospects and amplify its brand enabling it to be IPO ready and find a home on the Nasdaq or an international stock exchange," said Abhishek Sharma, CEO, Foundation Holdings.
Toppr claims to have more than 1.3 crore learners on its AI platform and helps them prepare for various school, board, and competitive exams. It uses natural language processing to solve learner doubts instantly.
"...Our ambition is to implement an industry leading model for AI-enabled, blended education delivery by empowering educational institutions and teachers to create a platform of change and impact," said Aakash Sachdev, Managing Director of Foundation Holdings. “Our investment in Toppr also reflects our commitment to empowering great teachers via the new School OS. The new School OS already has 55,000+ learners on it," added Sachdev, who will join the board of Toppr.
Like other edtech platforms, Toppr too has benefited from the lockdown when the coronavirus outbreak had forced educational institutions to suspend classroom teaching in March. It claims to have emerged as the highest traffic destination for K-12 learning and hosts over 1 million sessions every day. Toppr’s community of 50,000+ educators from across the country has contributed to over 35 lakh learning pieces, including questions, solutions, concepts, games and videos for the students.
Market research firm HolonIQ forecasts that over $87 billion will be invested in EdTech over the next 10 years, almost triple the amount as compared to the prior decade. According to the latest research by management consulting firm Ken Research, India’s online education market is growing at 20% plus annually and is expected to reach $2 billion by 2021.