Indian education startup company, Doubtnut, achieves $15 million series A funding from China’s tech giant Tencent.
Series A funding
Series A funding is the first round of capital funding coming from outside investors. Compared to seed funding, this type of funding requires the company to have an established market already, and is gaining revenue, but just lacking the additional funding to be profitable.
The progress in series A is fast-paced, venture companies expect a faster growth from the company since it was already established before they started pouring in larger investments.
The seed funds for the Indian education platform, Doubnut was first initiated by venture companies like Sequoia Capital India, AET Japan, Omidyar Network India, and Waterbridge Ventures.
Now that the Edtech startup has proved its survivability and effectiveness in the market, it moves on to the second stage, which is the series A funding, where they got the interest of China’s tech giant Tencent, shedding out $15 million worth of funding.
What’s next for Doubtnut?
The Doubtnut launched in October 2017 as an online multilingual learning platform intended for K12 students reviewing for various entrance exams such as the Indian Institute of Technology entrance exam, the Joint Engineering entrance exam, and the National Eligibility entrance exam.
The app uses image recognition to analyze test problems and come up with a video tutorial on how to solve it. As of now, the app is limited to 11 Indian languages and the English language.
The main target of this app are low-income groups, with the help of Doubtnut; they can avail of high-quality educational services at such a low cost. According to data, the app is being accessed by more than 1.2 million users daily.
The series A funding Doubtnut will receive from Tencent and its existing investors since seed funding will be used for various improvements. The Doubtnut will widen its scope in India, expand its software repository, improve its tech capacity, and expand its team of innovators and programmers.