Edtech Startup Klassroom Plans to Raise $2M For Its Expansion
Klassroom, India’s first of a kind Branded Network of Coaching Centers which had raised $2,50,000 plans to raise a further $2 million to cater to its expansion plan.
EdTech startup Fusion Klassroom Edutech Pvt. Ltd. which raised $250K in December 2017, is now planning to raise a further $2 million to cater to its expansion plan. Klassroom is a branded network of coaching classes catering to students from grade 8th to 12th across all streams and boards. Klassroom identifies and partners with only the finest local coaching centers, thus assuring parents and students a predictable and high-quality coaching experience within their locality, while providing standardized and value-added services.
Co-Founded by Alka Javeri, Dhruv Javeri and Dhumil Javeri in 2016, Klassroom is a recognized startup under the Department of Industrial Policy & Promotion (DIPP) and Startup India initiative and operates on a revenue sharing model with partners.
The latest round of funding of $250K was led by four investors viz. Mohan Mechem Projects Pvt. Ltd, Dhaval Patel, Nachiket Dighe and Pramod Dighe. The initial funding for Klassroom, was done by UK based investor Sanjay Choudhary when Klassroom was in its nascent stage. Sanjay who is a serial investor in multiple start-ups has also founded Incuspaze, which has partnered with top EdTech organizations including the likes of Byju’s and Toppers. Sanjay believes that he has found the next billion-dollar idea in Klassroom which focuses on organizing the vastly unorganized and untapped local coaching industry of India by focusing on real world problems experienced by parents, students and coaching class owners. The concept of Klassroom is further validated by the positive testimony of its customer base including the likes of real-estate barons Sunil Jain and Ghanshyam Parmar.
Aniket Mohan Thite, Director of Mohan Mechem Projects Pvt. Ltd, says, “Klassroom is an idea whose time has come. A low capex, highly scalable business model led by honest and hungry founders ensure not only safety of capital but also hyper growth opportunities. The education sector needs innovation not only at the online level but also at the offline level. Klassroom bridges the gap between online and offline business models. Klassroom is the future.”
With this funding Klassroom has already expanded to a network of 120 smart coaching centers and 10 fully controlled flagship centers across Mumbai with a capacity of more than 15,000 students per year.
With over 10,000 in-center visits of parents-students in this academic year in Mumbai alone, Klassroom now has reach of more than a million students. Klassroom houses a team of 35 dynamic experts and is in the process of quickly adding team members at multiple levels. Reaping rewards of the superlative technology setup and marketing initiatives, both online and outdoors, Klassroom has grown ten-fold YoY on multiple parameters including student capacity, number of enquiries, reach and revenue.
The company is now planning to raise further $2 million and is in advance stage of discussion with VC funds and ultra HNIs. This funding will help the company grow to a network of 450+ Klassroom centers within 12 months including 325 smart centers and 130 flagship centers building up capacity of 50K students across 5 cities to become the largest network of branded coaching classes in India. Klassroom is targeting 10x growth by 2020 by focusing on outreach marketing, building fully controlled flagship centers, and continuous technology upgrade.
By 2022, Klassroom’s plans to have a Pan India presence, spanning across 20 cities, acquiring 150k admissions with a projected revenue of $100 million and a network of 2100 Klassroom centers (1500 smart centers and 700 flagship centers) with a hybrid (online + offline) business model.
With start-ups disrupting the traditional business models across industries, Klassroom is filling the void of the estimated $45 billion unstructured and fragmented coaching industry similar to what OYO Rooms is doing in the hospitality sector.
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