Sequoia backed Cuemath raises $40.2 mn from new, returning investors

Sequoia backed Cuemath raises $40.2 mn from new, returning investors
Photo Credit: Pixabay
8 Dec, 2020

Riding the ongoing edtech boom, Bengaluru headquartered Cue Learn, which offers mathematics classes via its online platform Cuemath, has raised Rs 297.15 crore ($40.19 million at current exchange rate) from new investors Alpha Wave Incubation, Lightstone Fund, and existing investors.

Returning investors in the round included CapitalG International, SCI Investments V (Sequoia Capital India), and Manta Ray Ventures, as per a regulatory filing on Friday.

The company said it is raising the sum for immediate working capital and long-term funding requirements. It also plans to invite further capital infusion from investors.

The private placement issuance of shares occurred across two bands of equity -- 200 equity shares aggregating to about Rs 41 lakh, and Series C preference shares aggregating to Rs 296.7 crore.

The company last raised $2.7 million in a mix of equity and debt round from Trifecta Capital’s venture debt fund in July.

Prior to that, last December, it raised $5.5 million. The round was led by venture capital fund Manta Ray Ventures and returning investors CapitalG, the venture arm of Google’s parent Alphabet, and venture capital firm Sequoia Capital India.  

Founded in 2013 by Jagjit Khurma and Manan Khurma, Cuemath offers mathematics classes on a franchisee model, and deploys physical and gadget-based content to teach the subject to students between the lower kindergarten and matriculation levels.

The curriculum is based on learning standards from Indian and foreign education boards. At the last count, the platform said it had 40,000 students on the platform from over 5,000 centres across 80 cities.

Cuemath’s fundraise comes amid a string of aggressive funding deals in the edtech space. As the Covid-19 pandemic has forced education systems to move online, investors seem to be boosting their portfolios by backing e-learning providers.