Cuemath, a Bengaluru Based Ed-tech Startup focussing on K-12 Maths learning raises USD 57mn in Series D at valuation of $407mn

Date of Announcement: June 01, 2022

Startup/Company: Cuemath (Cue Learn Private Limited)

About Company: Sequoia-backed Cuemath, founded in 2013 by Mr. Manan Khurma, an after-school online maths teaching platform for children in kindergarten through 12th grade. Company aims to teach WHY in Mathematics to help students solve real life problems than just focussing on WHAT (i.e. formula or derevatives). On the platform, the company currently has over 10,000 educators and 200,000 students across 70 countries.

Headquarters: Bangalore

Investors Participated: Funding round was led by US-based Alpha Wave Global including its current investors viz. Lightrock India, Sequoia Capital, Alphabet's independent growth fund CapitalG, Manta Ray, and Unitus.

Valuation: Post funding valuation of company has reached $407 Million (~INR 3155cr) which is more than double to previous valuation in Series C i.e. Valuation has grown 2x post Series C Round for $40mn in December 2020 backed by LIghtrock India and Alpha Wave Incubation. Obtaning such valuation in funding winter is backed by product, strong consumer base and expansion amid COVID surge.  

Dilution: 57/407*100 = ~14.00% (Determined post-money)

Company’s Comments:

Company said in a statement "Cuemath aims to expand to over 100 countries by the financial year 2023. This plan includes bolstering its presence in North America, APAC, the UK, Europe, and the Middle East and capturing markets in Africa and South America,".

Cuemath’s CEO Vivek Sunder said in an interview, "Product innovation and personalisation coupled with a low capex model augmented our global scale-up and beefed our conversion rates to 3x"

Purpose of Funding:

• Funds will be used to improve product-pedagogy outcomes, hypergrowth projects, acquisitions, and partnerships;
• Catalyse efforts to develop a powerful worldwide math brand;
• Expand its base to over 100 countries by the financial year 2023 for its presence in North America, APAC, the UK, Europe, and the Middle East and capturing markets in Africa and South America

Competitors: BYJU's, Unacademy, Vedantu, Meritnation, Toppr, etc.

Sources: Social media and news