Vietnam EdTech Startup Marathon Raises $1.5M Pre-Seed

Addressing Educational Gaps in Vietnam: The Rise of Marathon Education

Marathon Education was established following observations by its founders regarding the stagnation of after-school educational practices in Vietnam. Traditional tuition centers, particularly those located in major urban areas, often accommodate large class sizes.

Co-founder Pham Duc noted, “These learning environments are frequently overcrowded, a situation that hasn’t significantly improved over the last twenty years, mirroring my own experiences with similar classes in Vietnam.”

Securing Pre-Seed Funding for Expansion

Launched just six weeks ago by Pham Duc and Tran Viet Tung, Marathon aims to enhance the accessibility of after-school learning throughout Vietnam. The startup has recently secured $1.5 million in pre-seed funding.

This funding round was spearheaded by Forge Ventures, a newly formed fund from Alto Partners, and included contributions from Venturra Discovery and iSeed SEA.

Curriculum and Focus Areas

Currently, Marathon’s offerings are centered on mathematics and science courses aligned with the National Curriculum for grades six through twelve, as defined by Vietnam’s Ministry of Education and Training (MOET).

The company intends to broaden its scope to encompass all subjects within the MOET curriculum in the future.

Founders’ Backgrounds and Industry Insight

Prior to establishing Marathon, Pham Duc worked as an investor at TPG Global. Tran Viet Tung is an experienced entrepreneur, having previously founded travel platforms such as Triip.me and Christina’s.

Both founders, having grown up in Hanoi, possess firsthand experience with the after-school learning center landscape.

Market Analysis and Accessibility Challenges

Pham estimates that between 50% and 70% of students in grades K-12 participate in after-school classes. However, the industry remains highly fragmented.

Many learning centers are operated by former public school teachers and are primarily concentrated in major cities.

“A key issue identified through student feedback is limited accessibility,” Pham explained. “Securing a place in classes taught by highly sought-after tutors isn’t guaranteed, even for students in Hanoi and Ho Chi Minh City.”

Furthermore, students in more remote areas often travel to Tier 1 cities to attend preparatory courses before significant examinations, such as university entrance tests, frequently residing in hostels for approximately a month.

Challenges Faced by Educators

Operating a learning center typically requires teachers to manage administrative responsibilities, including marketing, student admissions, and communication with parents, which reduces the time available for curriculum development.

The recent COVID-19 lockdowns necessitated a rapid transition to online teaching platforms for many educators.

Marathon’s Value Proposition for Teachers

By joining Marathon, teachers are relieved of administrative burdens, allowing them to concentrate on teaching. The online format also expands their potential reach to students in various locations.

Pham suggests that teachers transitioning from traditional centers to Marathon could potentially see their earnings increase by a factor of two to three.

Teacher Selection and Support System

Prospective teachers undergo a rigorous screening process, evaluating their track record of student success, including exam results and grade improvements.

Marathon provides each teacher with teaching assistants who facilitate online lectures, address student questions via instant messaging, and lead detailed discussions in breakout rooms with groups of around 20 to 25 students.

Regional Considerations for Expansion

Marathon initially launched in Ho Chi Minh City, and its expansion strategy will account for the cultural nuances between northern and southern Vietnam.

This includes sourcing tutors with regional accents and tailoring marketing approaches accordingly.

Adapting to Regional Parent Preferences

“We will treat the teacher selection and curriculum development as separate considerations, as the two regions exhibit distinct characteristics,” Tran stated. “Parents in the south are generally more open to experimentation and new services, while those in the north prioritize recommendations from their networks and word-of-mouth, making them more cautious.”

“Therefore, our approach will be customized to serve the unique needs of customers in both the north and south.”

The Future of Online Learning

Marathon intends to maintain its online-only model even after lockdowns are lifted and in-person classes resume. Pham observed a significant shift in parental attitudes towards online learning during the pandemic.

“Attendance rates are currently at 99%, even with the ongoing lockdown,” he reported. “We believe that online learning is the most scalable and effective approach, and we will focus our strategy accordingly.”