Kiddom Secures $35M Series C Funding & Early Revenue
Kiddom Secures $35 Million in Series C Funding
Kiddom, a provider of a digitally-focused curriculum aligned with state core standards, has announced the completion of a $35 million Series C funding round. Altos Ventures led the investment, with further participation from Owl Ventures, Khosla Ventures, and Outcomes Collective. This financing round arrives approximately three years following Kiddom’s Series B, which totaled $15 million and was also spearheaded by Owl Ventures.
From Adoption to Revenue
The company’s recent success extends beyond simply raising capital; Kiddom has demonstrably begun generating revenue. Established in 2012, Kiddom initially secured substantial funding despite lacking a defined revenue stream or business model. However, Ahsan Rizvi, CEO and co-founder, and Abbas Manjee, chief academic officer and co-founder, believe prioritizing user adoption over immediate monetization proved crucial.
Manjee stated that at the time of their Series B funding, profitability was not yet achieved. The strategy centered on offering a free product to educators and students, with the intention of developing a premium enterprise solution built upon this foundation.
A Bottom-Up Sales Approach
This approach mirrors strategies employed by other educational technology companies. For instance, ClassDojo focused on widespread adoption before introducing a paid version of its classroom communication platform.
Kiddom’s Enterprise Product Suite
Kiddom has primarily invested its capital into the research and development of its enterprise-level product. This offering comprises two key components.
- A platform designed to integrate various school systems into a unified interface for tracking student engagement and performance.
- A comprehensive digital curriculum aligned with Common Core standards – the established benchmarks for math and English language arts learning at each grade level.
While the digital curriculum represents Kiddom’s most potentially lucrative offering, it also presents the greatest sales challenge.
Navigating Vendor Approval Processes
Manjee highlighted the lengthy and rigorous vendor approval procedures within individual states. The high stakes involved mean that school districts tend to rely on a limited number of trusted vendors when addressing core curriculum requirements.
Competition and Market Dynamics
Kiddom’s continued success is contingent on its ability to maintain a competitive edge over established curriculum providers, such as Pearson and McGraw-Hill. Rizvi noted that these older companies are currently experiencing a rapid decline in market share.
The termination of a proposed merger between McGraw-Hill and Cengage last year further illustrates the evolving landscape of the educational curriculum market.
Impressive Growth Metrics
Kiddom’s product is gaining traction with users. While specific figures were not disclosed, the company reported a 2,525% increase in new Annual Recurring Revenue (ARR) during its first year. ARR growth is projected to reach 300% from 2020 to 2021.
Furthermore, Kiddom estimates that its product is utilized by at least one teacher in 70% of schools across the United States, a consistent metric since 2018.
Investor Confidence and Future Outlook
This latest funding round and demonstrated revenue growth underscore Kiddom’s competitive position in the eyes of investors, as well as its appeal to both synergistic companies and the demanding requirements of school districts.
