Toddle, a rapidly growing edtech SaaS startup, is in discussions to raise $15-18 million in a fresh funding round, sources familiar with the matter revealed. This funding will be aimed at fueling the company’s expansion as it continues to provide educational tools to schools globally.
Toddle has already established itself as a significant player in the education sector, particularly with its teaching and learning platform that caters to independent schools offering progressive curricula like the International Baccalaureate (IB). The company’s current product portfolio is used by over 2,000 schools across 100 countries, including major markets like the US, UK, Australia, and China.
GSV Ventures to Co-Lead the Round with Existing Investors
The upcoming funding round is expected to see strong participation from both new and existing investors, with GSV Ventures likely to co-lead the round. The firm is known for backing successful edtech startups like PhysicsWallah, Coursera, and Classplus. Toddle’s previous investors, including Peak XV (formerly Sequoia India), Matrix Partners (now Z47), and Tenacity Ventures, are also expected to contribute heavily.
One of the standout features of this funding round is the anticipated involvement of a micro VC from the US. This is likely to further boost Toddle’s appeal in the global edtech ecosystem, making it an attractive prospect for investors looking to tap into the growing demand for SaaS solutions in education.
Toddle’s Growth Trajectory and Market Position
Since its founding in 2019, Toddle has been steadily expanding its user base and platform features. Its SaaS platform is designed to simplify teaching and learning processes for educators, with a focus on schools that follow international curricula. While the company’s financials reveal a sharp jump in revenue, it has also seen a significant rise in losses, a trend familiar among edtech startups as they scale rapidly.
For the fiscal year ending March 2023, Toddle’s revenue from operations grew by 72%, reaching Rs 32.35 crore, up from Rs 18.8 crore in FY22. Despite this revenue surge, the company posted a loss of Rs 40.7 crore, a notable increase from the Rs 19.45 crore loss reported in the previous year. Toddle’s post-money valuation is expected to be around $100 million, positioning it as a strong contender in the edtech SaaS market.
Competitive Landscape in Edtech SaaS
Toddle operates in a highly competitive space, with major players like Classplus, Teachmint, and Unacademy’s Graphy competing for market share. Notably, Classplus is a direct competitor to Toddle and has received backing from some of the same investors, such as Peak XV and Matrix Partners. Despite the competition, Toddle’s focus on international schools and progressive curricula sets it apart from other platforms, which tend to cater more to the K-12 sector.
The edtech SaaS industry, particularly in India, has faced a slowdown in funding, but Toddle’s ability to attract top-tier investors suggests that the startup is still seen as a valuable asset in the space. Larger edtech deals, such as PhysicsWallah’s $210 million funding round, indicate that investors are regaining confidence in the sector.
Industry Trends and Funding Revival
The recent uptick in funding activity for edtech startups is a promising sign for the sector. Following a period of decreased investment, startups are beginning to secure larger funding rounds once again. PhysicsWallah’s $210 million raise is one of the biggest deals in the space, followed by Eruditus and upGrad, which secured $150 million and $60 million, respectively.
Toddle’s funding round comes at a time when the edtech space is showing signs of a recovery, with several prominent startups raising significant amounts of capital. The sector’s revival is seen as a sign that investors are again recognizing the potential of online education, particularly in markets outside traditional K-12 systems.
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