uLesson Secures $7.5 Million Series A Funding - EdTech Africa

ULesson, a Nigeria-based educational technology company that provides students with digital learning materials via SD cards, has secured $7.5 million in Series A investment. Owl Ventures spearheaded the funding round, having recently finalized over $500 million in new funding. Additional investors in this round include LocalGlobe, alongside previous backers TLcom Capital and Founder Collective.

This new funding arrives just over a year following uLesson’s $3.1 million seed round completed in November 2019. The most significant change for the company since then isn’t simply the increased capital, but rather the effect of the coronavirus pandemic on the core benefits of its services.

ULesson entered the market shortly before the World Health Organization officially declared COVID-19 a pandemic. The company, which utilizes SD cards to deliver content in areas with limited internet access, experienced a surge in the number of smart devices being used in homes throughout Africa as students transitioned to remote learning.

According to founder and CEO Sim Shagaya, “The environment shifted in a way we hadn’t anticipated.” He further explained that this development “creates opportunities for us to pursue numerous exciting possibilities within the edtech space that wouldn’t be feasible in a purely offline environment.”

Like many other edtech companies, uLesson has experienced substantial growth due to the rapid shift towards remote education. Its role as a supplemental learning resource contributed to a 70% month-over-month increase in users, as stated by Shagaya. The founder believes that improvements in digital infrastructure will enable them to “transition to a fully online platform by the second quarter of this year.”

The service requires an annual subscription fee of $50, and the application has been downloaded over 1 million times.

Driven by increased demand, Shagaya envisions uLesson transforming into a live, online platform, moving away from its initial focus on offline, self-paced content. The company is currently testing live tutoring features, having recently implemented a system allowing students to submit questions while reviewing pre-recorded lessons. The test generated over 3,000 questions daily, leading to a temporary suspension of the feature due to overwhelming demand.

“Our goal is to enable students to instantly connect with a knowledgeable college student anywhere on the continent for immediate assistance with their studies,” Shagaya stated. This trend of content-based startups integrating live tutoring is mirrored by companies such as Chegg, Quizlet, and Brainly.

The broader landscape

The e-learning sector has experienced significant growth following the coronavirus pandemic, resulting in a surge of tutoring platforms and educational content aimed at students. Byju’s stands out as one of the most highly valued companies in the edtech space, providing online learning resources and test preparation services.

However, Shagaya believes that no existing competitors, including Byju’s, have yet successfully developed a digital approach tailored for African markets. While placement services exist in countries like South Africa and Kenya, and traditional tutoring services offer in-person instruction, there isn't a dominant player offering a comprehensive digital curriculum.

“The potential of the African market is widely recognized,” Shagaya stated. “However, it’s also understood that a dedicated local team is essential for successful implementation.”

Shagaya views the African edtech market as exceptionally promising due to two key factors: a large youth demographic and a substantial proportion of students attending private schools. These combined elements suggest a considerable pool of students with both the financial means and the motivation to invest in supplemental education.

A primary challenge for uLesson, and for any edtech company that saw growth during the pandemic, lies in effective distribution and demonstrable results. While uLesson is currently undertaking a study in collaboration with the University of Georgia to assess student mastery, it has not yet released data on its effectiveness.

“The success of content and products ultimately depends on how effectively they are distributed,” Shagaya explained. He pointed out that pre-recorded video lessons are popular in India due to specific cultural and social factors. ULesson is focused on identifying the optimal video format for various African markets and integrating it into its platform.