Byju’s Classes plans to raise $30 million funding from Sequoia Capital. Byju’s Classes is the brand owned and operated by Think and Learn P Ltd. Byju’s Classes is based in Silicon Valley of India, Bengaluru. The company started migrating from a classroom teaching module to online module courses and tablet learning. They started operations in 2008 with 1,000 students. In 2014 the students number swell to 30,000 for the year.
The company is tapping huge population of aspiring engineers, doctors and business leaders. Most of the educations firms are stuck to traditional classroom based teaching to online teaching. One of the factors may be revolution in mobile platforms, offers greater scalability.
Another factor is that of hyper competitive education system in India. Virtually there will hundreds and thousands of students compete for admissions into top engineering and business schools such as Indian School of Business, Indian Institute of Technology and Indian Institute of Management.
The company was founded by Byju Raveendran in 2008 who left his Indian Institute of Management admission a bye and started tutoring the students. He started by teaching students for preparation of Common Admission Test to the IIM’s. Now they have started teaching for engineering and medical entrance too. Byju’s Classes is backed by Manipal Group and Aarin Capital.
Growth of education technology firms has been well received and fast paced in recent times. Companies like Embibe focuses only on engineering entrance exams has increased intake of students from 10,000 to 200,000 last year. Apart from this Embibe raised $4 million last year as funding. They are planned to raise some more funds in coming weeks for which talks with PE investors is under way.
Another startup company Toppr has increased their student intake from 15,000 to 170,000 in April. One of the many deciding factor is higher penetration of smartphone among student population. Toppr secured funding of $10 million from Fidelity Growth Partners. Vedantu the company provides personalised coaching online has raised $5 million from Tiger Global.
Industry observer Narayan Ramaswamy, head of education, KPMG states ““Traditional test preparation institutions cannot control how exams are prepared, and there is a risk for these to be nimble footed “’ He further added “that’s why online players are a less risky choice in terms of cost and flexibility. I see more players getting into the space and collaborations happening.”“ why online players are a less
Online education portal like Toppr, iProf India, Vedantu have raised funds from leading PE investors and this sector may witness major action in coming days.