Bengaluru-based edtech startup Cuemath has raised USD 40 million in Series C round co-led by LGT Lightstone Aspada and Alpha Wave Incubation (AWI), a VC fund managed by Falcon Edge Capital. Existing backers, Sequoia Capital, Google’s investment arm Capital G, and Manta Ray also participated in the round.
According to the regulatory filings, Cuemath has allotted 200 equity shares and 144,618 Series C CCPS (Compulsory Convertible Preference Shares) at an issue price of USD 278.05 per share to raise the amount, a report by local media Entrackr said. Lightstone Aspada invested USD 17.1 million in Cuemath, while AWI wrote a USD 15 million check. Capital G, Sequoia, and Manta Ray Ventures pumped in USD 5 million, USD 1 million, and USD 2 million, respectively.
This round of investment valued Cuemath at USD 171 million, recording a rise of 80% compared to its previous valuation of USD 95 million during its last investment, the report added. It had raised USD 5.5 million in its Series B round last December.
Founded in 2013, Cuemath offers online math learning and coding program for school students across kindergarten to grade 10 in over 10 countries including India, UK, USA, UAE, Singapore, Canada, Thailand, Indonesia, Egypt, Nigeria, Nepal, and Bangladesh.
The company claimed it has delivered over 25 million classes to over 100,000 students across geographies. Furthermore, it said its digital platform grew four-fold in the past six to eight months and now has over 500,000 hours of live classes.
This comes at a time when investors are bullish on the edtech sector in the world’s second-most-populous country. Byju’s, world’s largest edtech startup has alone raised USD 1.2 billion in 2020. Meanwhile, Unacademy has raised over USD 150 million, while Vedantu received over USD 100 million this year.
According to industry executives tracking the funding activity, edtech startups raked in almost one-third of the VC funding this year, which stood at about USD 7 billion by September.