Bengaluru-based EdTech startup Kreedo has successfully raised $4 million (INR 33 crore) in a Series A funding round, spearheaded by Heritas Capital. The funding round also garnered support from existing investors such as UBS Optimus Foundation, Gray Matters Capital, 1Crowd, The Chennai Angels, and The Joka Angel Network, among others.
Kreedo intends to leverage this new capital to enhance its product offerings and broaden its geographical reach within India. “With the current round, we will take Kreedo to more geographies in India. With incoming demand from our school partners, we also plan to extend our product offerings moving upwards to Grades 3-5, and enhance Practico, our digital home learning platform,” stated Mridula Shridhar, co-founder of Kreedo.
Founded in 2012 by Shridhar and VK Manikandan, Kreedo partners with affordable private schools and preschools to revolutionize early learning. The startup utilizes a proprietary 6T learning framework that combines play-based learning with toys, technology, theory, teacher training, timetables, and teamwork.
Over the past two years, Kreedo has reported significant growth, doubling its revenue and expanding its presence to 1,700 schools and preschools. The number of children benefiting from its programs has also increased, rising from 55,000 to over 140,000.
It is important to note that Kreedo’s fundraising success comes amidst a challenging period for the Indian EdTech sector, which has been grappling with a funding crunch. The sector, once a favorite among venture capitalists and private equity firms during the pandemic, has seen waning investor interest as schools and colleges reopened post-lockdown. Contributing to the sector’s struggles are issues such as heavy cash burn, mounting losses, and weak governance.
In addition, the EdTech space has been one of the hardest hit by layoffs over the past two years. Major players like BYJU’S, Unacademy, and UpGrad continue to report substantial financial losses, while companies such as Udayy, Super Learn, and DUX Education have ceased operations due to the ongoing funding challenges.
Despite these hurdles, the Indian EdTech market is projected to grow significantly, with an estimated market opportunity of $29 billion by 2030, according to an Inc42 report.
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