Bangalore-based online test preparation startup TopRankers has raised Rs 4.5 crore ($670,000) in angel funding from CareerNet Consulting Pvt. Ltd and Ideation Initiative Pvt. Ltd, a top company executive told Techcircle.in.
The funds will be used to expand technology and marketing verticals and 15% would be spent on research and development, Gaurav Goel, co-founder, TopRankers, said. "We are present in 10 cities in the B2B segment and want to expand to 50 more cities within six-eight months," he said.
The portal enables students to prepare for competitive exams in banking, law and public services.
Founded in 2014 by Goel, Malay Sarkar, Mehbub Hussain, Harish Goswami and Himanshu Joshi, the venture has offices in Bhopal and Delhi apart from Bengaluru. It has almost 40 members working across centres along with 60 freelancers.
The startup expects its user base to grow from 50,000 to 5 lakh students within 12-18 months.
"The competitive education segment in India is estimated to be worth $6 billion and with more exams being held online, it is likely to grow exponentially in future," Rishi Das, CEO, CareerNet, said in a statement.
CareerNet is a recruitment firm covering technology, banking and financial services.
Ideation Startup Fund is focused on early stage investments in education, healthcare and green energy.
"With the international online learning market expected to reach $107 billion by the end of this financial year, there are numerous players that have already started filling in the gaps. We felt it was just the precise moment to invest in such ventures, and TopRankers, being a potential venture," said Mohit Gupta, MD, Ideation Initiative.
Of late, ed-tech startups have elicited a lot of investor interest. In March his year, Bangalore-based ed-tech firm Byju's raised $75 million from Sequoia Capital and Sofina.
Mumbai-based test-prep startup Toppr raised funding worth $10 million (around Rs 65 crore) from Fidelity Growth Partners India, SAIF partners and Helion Ventures in May 2015.
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