Imran Rashid

Venture Funding in Indian Edtech Startups Byjus was once the most valuable Edtech private company in the world. That's history now. The founder claims to be bankrupt, and the company is insolvent. The Byju #founders have set a terrible example. Its implosion shows an utter disregard for corporate governance and honesty. No one expected a $20B startup to behave like this. In the aftermath of Byju's disaster, most Edtech founders feared that global investors would stop #investing in the education sector. Byju's collapse indicated difficulties in building technology companies in the education sector. Everyone was digitising offline classes and content. There is a natural limit to this model. Investments in early-stage #startups have come down in the past 2 years because of the Funding Winter, but the edtech industry has been hit worst in the wake of Byju Gate. The industry needs fresher business models. Foreign education could be one such area. More than a million Indians go abroad every year for higher studies. This number is increasing steadily. As per TOI, more than 1.3M Indian students went abroad for higher studies between January and July 2024. I was astonished to read that more than 9,000 Indians study in Bangladesh. I can't imagine why anyone would choose Bangladesh for higher studies, but 9,000 students disagree with me. Study Abroad is a big industry that's exploding. Demand not only comes from Tier 1 cities but also from Tier 2 & 3 towns. Hence, it's not surprising that some smart founders are working towards making this easier and seamless. Zinc Money, an edu-wealth startup, is one such player. It helps parents plan and save for their children's global education. It's a new company, launched in October 2023. However, it just raised a $25M seed round at a $100M valuation from a group of global VC funds. A $25M seed round is unheard of in #India where most founders struggle to raise $1M in seed money. This is by far the largest seed investment in this year. Why did it happen? 1. Study Abroad is a big, profitable, high-growth industry in India. 2. However, no VC would give you or me even $2.5M in seed money. VCs back founders more than businesses. Their job is to identify extraordinary founders, give them money and let them build businesses. In the #VentureCapital industry, track record shouts louder than everything else. Prashanth Ranganathan, Zinc's founder, is a celebrated entrepreneur. He sold his last company, PaySense, for $185M to PayU Credit in 2020. He then served as the CEO of PayU Credit for almost 4 years before starting Zinc. By writing a $25M cheque, VCs are saying, "We believe in Prashant and expect him to build another successful business". Success in startup investing comes from backing the best people. I conduct workshops teaching founders how to raise capital. The next one is on the 9th & 10th of November. Email me at [email protected] if you would like to know more about it.

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Which is Better Approach for EduTech Startup - Mass vs Class? To build EduTech startup, there will be two path for it to choose from after startup built some traction in business. Scaling option / positioning options. 1. Mass player - Keep affordable price and have big batch size like 200-250 per batch and aim for 2000-10000 students and even if 10% of it placed, as 10% of students will be intelligent and some how such placement will happen, irrespective of teaching quality or transformation in students ability. 2. Class Players- Small batch is premium prices, with refund fee policy if not able to provide value to customers. Aim for Extensive training, in depth training and transform students ability. Before Class and after class - see drastic transformation in ability and Jobablity. This approach needs personal attention/grooming of students, long term program and extensive effort. What is need of hour? What would be your approach, if you are CEO of the company and keen to create impact in society and help people to build their life in IT space. Thanks for your inputs & suggestions

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Hello Aspiring Entrepreneurs! We had started a "Startup Soul [ For the Startup - By the Startup]", a community-driven initiative dedicated to fostering innovation and growth. Our Mission: Create Bihar's largest startup ecosystem community, empowering startups by startups. Join Us! If you're an early-stage startup or want to start a startup, we invite you to join our community. Benefits: • Connect with a large network of newly established startups • Collaborate and support each other • Access resources and expertise for app development and website-related work Join Our Teams Group: Link 🔗 🖇️[https://lnkd.in/gf9k4KQq] Together, let's build a thriving startup ecosystem in Bihar! Startup Bihar | Startup India | Department of Industries, Government of Bihar | MSME Business Forum India | Bihar Industrial Area Development Authority (BIADA), Govt of Bihar | BIADA Bihar | Invest Bihar | Zero Lab Bihar | Incubation Centre IIT Patna (IC IITP) | Junk Bazar Pvt Ltd | CIMP Business Incubation and Innovation Foundation | TiE Patna | TYE Global (TIE Young Entrepreneurs) | Ashutosh Bharti #StartupSoul #BiharStartups #StartupEcosystem #Entrepreneurship #InnovationHub #StartupCommunity #CollaborationOverCompetition #SupportStartups #BiharEntrepreneurs #StartupIndia #GrowWithUs #JoinTheMovement #StartupNetwork #EmpoweringStartups #CommunityFirst #StartupSuccess

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While the edtech space has been going through a long spell of the so-called ‘funding winter’, PhysicsWallah (PW) appears close to raising a new large round. Fresh funding will be led by new investors whereas existing investors including Westbridge and GSV Ventures will also participate, three sources aware of the discussion  “PhysicsWallah is set to raise $150 million from new and existing backers,” said one of the sources requesting anonymity. “The terms of the deal have been sealed and the transaction is likely to be public soon.” This will be the second financing round for the Alakh Pandey-led firm in the past two years. PhysicWallah raised $100 million in a Series A round led by Westbridge and GSV Ventures in June 2022.  “PhysicsWallah will be valued at around $2.8 billion in the new round,” said another source who also wished not to be named. This will be over a 2.5X jump in the company’s valuation as PhysicsWallah was valued at $1.1 billion in its Series A funding. Queries sent to PhysicsWallah and Westbridge didn’t elicit any immediate response. We will carry their comments in case they respond. According to the startup data intelligence platform TheKredible, WestBridge held a 2.4% stake in PhysicWallah while GSV owned 1.44% as of the Series A round. Its co-founders Alakh Pandey and Prayeek Maheshwari cumulatively command 86.54% of the company. PhysicsWallah started with online coaching for IIT/JEE but has now become a full-fledged education firm, offering offline coaching, schools, colleges, and upskilling programmes. According to sources, about 30% of its revenue comes from JEE and NEET coaching whereas offline coaching (via Vidyapeeth and Pathshala) contributes 35% of the collection.  While the company is yet to disclose FY24 numbers, PhysicsWallah’s revenue surged 3.3X to Rs 779 crore in FY23. At the same time, the firm’s profit declined more than 90% to Rs 8.87 crore in FY23. #physicswallah #alakhpanday #pratekmaheswari#indiadailynews #indiadaily #newsdaily #startup #startupro #dailyupdates #newsupdate #newsfeed #news #dailynewspaper #dailynews #startupindia #NewsUpdate #startupnewsindia 

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I completely agree with Sabeer Bhatia about the PE Mindset of VCs in India. I think as Founders we should focus on convincing the customers. If your product is great and you need funds to scale, you will find many lenders. https://lnkd.in/dDw-a9_i

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🚀GrowthCap Ventures Set to Close Maiden INR 50 Cr Fund in 2 Months. Former BharatPe chief business officer Pratekk Agarwaal's venture capital firm, GrowthCap Ventures, is on track to finalize its inaugural fund at INR 50 Cr within the next couple of months. 📈 Fund Details: - Fundraising Progress: GrowthCap Ventures has already secured 50% of the fund's corpus. - Investment Focus: The fund intends to invest in 10-12 early-stage startups, primarily targeting fintech, SaaS, and deeptech sectors. - Sector Allocation: Allocation breakdown includes 60% for fintech, 30% for SaaS, and 10% for deeptech investments. 💼 Portfolio Investments: - GrowthCap Ventures has already made its mark by investing in Advance Mobility, a sustainable mobility startup specializing in fleet services for ride-hailing giant Uber. - Notable Limited Partners: The fund boasts a prestigious lineup of limited partners, including industry stalwarts like Beerud Sheth of Gupshup, Shankar Vailaya of Sharekhan, and others. 🎯 Future Endeavors: - Agarwaal envisions the launch of a growth-stage VC fund named 'Winners Fund' with a corpus of INR 250 Cr next year. This fund will target growth-stage startups in fintech, SaaS, and deeptech sectors, aiming to invest $2 Mn-$3 Mn per startup. - Operator-Driven Approach: GrowthCap Ventures adopts an operator-driven model, leveraging the experience and expertise of industry veterans to guide portfolio startups in their growth journey. 📈 Trends in the VC Landscape: - Rise of Operator VC Funds: Agarwaal highlights the growing trend of industry executives launching their own VC funds, driven by the desire to invest in and mentor multiple startups. - Founder Preference: Founders increasingly seek mentorship from experienced operators, fueling the demand for operator-driven VC funds. 🌱 Emerging Opportunities: - Despite the perceived funding slowdown, the startup ecosystem continues to witness the emergence of new funds led by former CXOs, underscoring the abundance of capital and the demand for strategic mentorship. GrowthCap Ventures' proactive approach and strategic focus on nurturing early-stage startups reflect its commitment to fostering innovation and driving growth in India's vibrant startup ecosystem. #GrowthCapVentures #VentureCapital #Fintech #SaaS #Deeptech #StartupInvestment #StartUpNews #BusinessNews #MicroShots #NewsUpdates

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We are looking for $2Mn - $2.5Mn seed funding. Reason: Edtech has a huge potential across the globe. Middle East, USA and Asia are the key regions for the B2B edtech. And absolutely, the entire globe is the addressable market for the B2C edtech. Addressable size ot the market: ( Only India ). According to recent reports, the Indian educational ERP software market is expected to reach US$3.49 billion by mid-2024 with a projected CAGR rate of almost 13%. The Indian ed-tech market recorded revenues of $5.1 billion in 2023, representing a compound annual growth rate (CAGR) of 18.4% between 2018 and 2023. Complete Edtech industry cannot be considered as risky. Believe me, Indian education ecosystem has to change a lot in terms of multiple parameters. For this to happen, the country has to allow more aggressive founders and companies to take charge. #Saama #Menterra Ventures : It’s your turn now! A lot to be discussed! Hope it turns out to be an amazing discussion at your Bangalore office very soon! Team E Student ✌️

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