Tiger Global Leads $65M Investment in Indian Edtech Classplus

Classplus Secures $65 Million in Series C Funding

Updated at 2 pm IST on June 24: Classplus announced on Thursday the completion of a $65 million Series C funding round. Tiger Global spearheaded the investment.

GSV Ventures, alongside current investors including Alpha Wave Incubation (AWI) – supported by DisruptAD and overseen by Falcon Edge – Blume Ventures, and RTP Global, also contributed to this financing.

A source with knowledge of the deal confirmed to TechCrunch that the round encompassed both primary and secondary transactions.

GSV Ventures' Perspective

Deborah Quazzo, Managing Partner at GSV Ventures, stated that Classplus became essential software infrastructure for India’s $30 billion offline tutoring sector during the pandemic lockdowns.

With the platform experiencing nearly tenfold growth in the past year, GSV recognizes it as a “Weapon of Mass Instruction.” The co-founders, Mukul and Bhaswat, are facilitating the transition of Indian tutors to online platforms.

This empowers them to establish and expand their businesses, while simultaneously increasing access to localized educational resources.

Initial Investment Discussions

Sources familiar with the matter previously indicated that Tiger Global was considering leading a $30 million investment in the Indian edtech company, Classplus.

Two sources revealed to TechCrunch that this new funding round, incorporating both primary investment and secondary transactions, values the five-year-old Indian startup at over $250 million.

This round builds upon a recent investment of approximately $30 million led by GSV.

It’s important to note that the round had not been finalized at the time of reporting, and terms were subject to change.

Previous Funding Rounds

Classplus previously secured $10.3 million in September of last year. This funding came from Falcon Edge’s AWI, cricketer Sourav Ganguly, and existing investors RTP Global and Blume Ventures.

Research firm Tracxn reported that this earlier round had valued Classplus at around $73 million.

Classplus did not respond to requests for comment. Sources preferred to remain anonymous due to the confidential nature of the discussions.

Focus on Hyperlocal Tutoring

With the increasing adoption of digital learning applications by students and parents, Classplus is capitalizing on the enduring presence of established teachers and coaching centers within local communities.

The startup specifically caters to these hyperlocal tutoring centers, which are widespread throughout India.

Mukul Rustagi, co-founder and CEO of Classplus, explained last year that many individuals from middle-class backgrounds in India have likely attended these tuition classes.

The "Shopify for Coaching Centers" Model

These are typically small to medium-sized businesses operated directly by teachers.

They enjoy strong local reputations, primarily gaining students through word-of-mouth referrals, and generally do not engage in extensive marketing efforts.

Rustagi has likened Classplus to “Shopify for coaching centers.” Similar to Shopify, Classplus doesn’t function as a marketplace for teacher discovery.

Instead, it provides a technological platform for teachers to enhance their engagement with students.