Cuemath, the online one-to-one math tutoring platform, raised $57m in a new round led by Alpha Wave at a valuation of $407m – a more than 2X jump in valuation. The funding comes at a time when falling valuations, slowing funding cycles and weakening investor sentiment have prompted many start-ups, particularly in the edtech sector, to lay off employees in the purpose of conserving their cash.
The funds will fuel the strengthening of product pedagogy outcomes, hypergrowth initiatives, acquisitions and partnerships, and catalyze its efforts to build a strong global math brand. Currently present in over 70 countries, Cuemath aims to expand to over 100 countries by FY’23. This plan includes strengthening its presence in North America, Asia-Pacific, the United Kingdom, Europe, the Middle East and conquering markets in Africa and South America.
“Cuemath’s latest fundraiser is a significant achievement given current industry trends. Valuations have become more realistic with the rationalization hitting the market; only growth-stage startups with strong business fundamentals can now establish a relationship of trust with VCs,” said Vivek Sunder, CEO of Cuemath. “Therefore, this substantial inbound interest from all of our existing investors validates Cuemath as the knowledge expert in the global after-school math tutoring market and signals recognition of the developments over the past several quarters.”
Sunder said Cuemath has shown promising growth since the last funding. Product innovation and personalization, combined with a low capital expenditure model, has increased our global expansion and tripled our conversion rates. With best-in-class retention and acquisition engine, we’ve created a powerful combination of a sustainable and scalable business model. »
“What sets Cuemath apart from almost any other information technology company is that we focus on one thing and one thing only: deep math learning outcomes,” said Manan Khurma, Founder and President of Cuemath.
He said that in every Cuemath class, the student experiences a powerful, personalized combination of a highly visual math curriculum delivered by a rigorously trained and caring teacher. “This has allowed Cuemath to have one of the best retention rates in the industry (80%), with half of all new admissions coming through referrals,” Khurma said. “These state-of-the-art measurements have encouraged all of our investment partners to once again support us in our global math mission.”
Led by Alpha Wave, this fundraising includes all of their existing investors, including Lightrock India, Sequoia Capital India; independent growth fund Alphabet CapitalG; manta ray; and Unitus.
“Cuemath’s ability to successfully deliver exceptional learning outcomes through its proprietary platform and high-level pedagogy has continued to impress us,” said Anirudh Singh, MD at Alpha Wave Global. “Not only in India, its success in key international markets like the United States, United Kingdom, Middle East and Singapore, while maintaining a high-quality unitary economy, differentiates the company in a market of competitive and dynamic education technologies »
Divya Venkatavaraghavan, investor at Lightrock India, said the Cuemath team had created a product for students, designed for the future of work and focused on learning outcomes. “Cuemath’s quality of traction in 70 countries and its efforts to build a model of parent-centric engagement has only strengthened our belief in the team.”
Surya Mantha, investor at Unitus Ventures, said Cuemath has all the ingredients for robust and sustained growth and is on its way to becoming an admired global education brand.
Cuemath’s vision is to become the number one math education platform in the world, and its mission is to create the next generation of invincible problem solvers. Cuemath said its growth will be impactful and efficient rather than capital-intensive.