Edtech SaaS startup Toddlehas secured funding of $17 million. The company will use the money in its product development and furthering the growth initiative.
Toddle, an edtech SaaS (software as a service) business, said has secured $17 million in a series A round headed by Sequoia Capital India, with participation from Tenacity Ventures and Trifecta Capital, as well as previous investors Matrix Partners, Beenext, and Better Capital.
This comes as B2C (business-to-customer) K12 (kindergarten through standard 12) online edtech startups in India have been suffering from post-pandemic demand declines, whereas those operating in the B2B (business-to-business) edtech segment have seen tailwinds of growth as schools have become more open to adopting innovation.
“A large part of this (the cash raised) will be spent in product development and expanding the expansion effort.
We have so far concentrated on content, design, and community efforts.
In the future, we aim to double down on that as well as experiment with go-to-market initiatives,” stated Deepanshu Arora, co-founder and CEO of Toddle, in a virtual conversation with Moneycontrol.
Arora further stated that the business intends to fill 70 to 80 roles over the next four to five months.
“A few senior jobs, such as VP (vice president) of marketing, VP of sales, and Head of People, are crucial for us to form a leadership team,” he added.
However, the firm did not reveal any information about its valuation following the fundraising round.
Toddle is an edtech SaaS firm founded in 2019 by Mahesh Arora, Gautam Arora, Misbah Jafary, Nikhil Poonawala, and Parita Parekh.
According to the company, its initial product is a teaching and learning platform utilised by independent schools that provide IB (International Baccalaureate) and other progressive curriculum.
“We are truly focusing on the extremely highest tiers of the educational environment,” Arora explained.
According to the firm, it has lately expanded its product offering to include additional foreign curricula such as Cambridge, British, and American curricula, and it will soon provide a product for preschools.
According to the firm, the Toddle platform is presently utilised by over 40,000 instructors from more than 1,500 schools in over 100 countries, including both free and paid clients.
Toddle is now present in the United States, the United Kingdom, Australia, China, and the United Arab Emirates.
Arora stated that the organisation has had a worldwide focus from its inception.
He remarked, “Around 40 percent of our income come from North and South America combined, about 30 percent comes from Europe and the Middle East, and the balance comes from the Asia Pacific. India accounts for roughly seven to eight percent of our income.”
Ashish Agrawal, managing director of Sequoia Capital India, said, “The Toddle founders’ enthusiasm for education is apparent and has grown on us over the years we’ve known them. They’ve channelled their enthusiasm into creating a product that instructors all over the world adore. We are happy to work with them in their drive to revolutionise teaching and learning,”
Toddle’s income for FY21 plummeted to Rs 9.4 crore from Rs 14.6 crore in the previous fiscal, according to the most recent statistics accessible on the Ministry of Corporate Affairs (MCA) website.
Arora continued, “In 2019, we were at approximately 50 paid schools, in 2020, it was at about 180-190, in 2021 it was about 400 and then in 2022, we have around 800 paying clients.
“Every year, we double our base.”
In addition, the firm lost Rs 0.2 crore in FY21, compared to a profit of Rs 1 crore the previous year. Toddle, on the other hand, has not yet made its FY22 financial statements public.
Prior to this round, the firm had raised a total of $2.95 million in three rounds.