Investments in EdTech startups2 min read

August 19, 2022 2 min read


Investments in EdTech startups2 min read

Reading Time: 2 minutesReading Time: 2 minutes

Straits Research claims that the E-Learning market will reach $645 billion by 2030 at a CAGR of 13%. The fastest CAGR (18.1%) is expected in the market of the Asia-Pacific region which includes 58 countries. E-learning is transforming the education system with smart classrooms, metaverses, and new technologies. We believe it’s important to keep informed about the changes and latest trends in the EdTech market, so we collected 3 pieces of news from investing in high-growth EdTech startups.

1. Cuemath raised $57M and has doubled its profits

The Google-backed math education startup Cuemath was launched in 2013 in India and is now present in the EdTech market in 70 countries. Cuemath raised $57 million in a round led by investment firm Alpha Wave Global. The EdTech startup is now valued at $407 million, which is more than a two-fold jump for it. The company plans to use funds to strengthen its product-pedagogy outcomes, hypergrowth initiatives, acquisition and partnerships.

2. CoachHub raised $200M and plans to expand its presence in the USA

Founded in 2018, Germany-based leading digital coaching platform CoachHub, which aims to provide personalized coaching to employees of all levels to help them advance their careers, closed a $200 million Series C investment round led by Sofina and SoftBank Vision Fund 2. Received finances will be used to drive innovation at CoachHub and to expand its presence in the global market with the emphasis on the USA. The company also plans to increase the number of employees from 850 to 1,000 by the end of the year. Now, CoachHub has over 3,500 business coaches in 90 countries serving over 500 clients.

3. Leap quadrupled in revenue and raised $75M

Established in 2019 in San Francisco, USA, Leap, the learning platform for training health personnel in Africa from leading international institutions, has received $75 million in the investment round Series D led by Silicon Valley-based Owl Ventures. The startup plans to use the funds to expand its presence in the market. Now, Leap cooperates with more than 750 universities. Besides, according to the co-founder of the startup, over the past year, the company has grown in revenue by 400%.

Despite the apparent development prospects for the E-Learning market and new EdTech startups, not all companies manage to maintain their revenue growth. For example, 2U (TWOU) stock fell 8% after the company reported lower revenue in its forecast for 2022. Now, 2U is looking to reorganize operations, cut its workforce by 20%, and decrease its spending on marketing campaigns. The company also said its chief operating officer, Mark Chernis, would step down. Overall, 2U shares have been down about 54% since the start of the year. Moreover, lately, Indian online-education provider Byju offered to buy 2U for more than a $1 billion to expand its presence in the USA. Now, Byju plans to raise $2.4 billion to acquire 2U.

Picture by Yana Kicc.

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