Skillmatics, a startup that develops educational games and toys for children, is in advanced discussions to raise around ₹600-700 crore ($60-75 million) in a fresh funding round, according to five people familiar with the development.
Premji Invest, ChrysCapital, and A91 Partners are among the investors currently in talks to participate in the round, the people added. Meanwhile, ongoing negotiations value Skillmatics at approximately ₹3,800-4,000 crore ($400-420 million).
Of the proposed fundraise, around ₹175-200 crore ($18-20 million) will come through primary capital and flow directly into the company. The remaining ₹400-500 crore ($42-52 million) will come through secondary share sales, allowing some early investors to partially exit, one of the people cited above said.
Skillmatics plans to deploy the primary capital to enter new categories and introduce products such as pretend-play offerings and plastic toys. At the same time, the secondary component will give some of the company’s early backers an opportunity to partially monetise their holdings.
Peak XV Partners is expected to account for a significant portion of the secondary transaction. The investor currently holds a stake valued at around ₹1,000 crore, representing roughly 25 per cent of Skillmatics at an overall valuation of around ₹4,000 crore, a second source familiar with the development said.
“While Peak will alone sell around Rs 400 crore worth of shares in Skillmatics, early investors, largely angels, will sell the remaining to stitch the round together,” the second source said.
Following the transaction, Peak XV is expected to retain its remaining stake, which could be valued at approximately ₹600 crore.
The transaction would mark another monetisation event for Peak XV Partners. The investment firm has executed several secondary share sales involving Indian new-age companies as it returns capital to its fund sponsors while seeking to realise gains from its portfolio investments.
However, the discussions remain ongoing, and the final structure and terms of the transaction could change as negotiations continue.
If completed, the deal would add to the recent institutional interest in India’s consumer and direct-to-consumer (D2C) startup sector. Venture capital firms are currently discussing investments in at least 18 consumer startups, reflecting renewed investor activity across the segment.
Furthermore, the proposed Skillmatics transaction would rank among the larger recent fundraises in the consumer startup space. It would also sit alongside sizeable transactions involving companies such as Sarvam, Emergent, River, Navi, and Pixxel.
The ₹600-700 crore round would represent Skillmatics’ largest fundraise since its founding around a decade ago. It would also mark the company’s first funding round in more than four years.
Skillmatics last raised $16 million in 2022 at a valuation of $128 million. At the time, the company reported consolidated revenue of approximately ₹90-100 crore. Since then, however, Skillmatics has expanded its revenue significantly, growing its top line around eight-fold.
The Mumbai-based company reported sales of approximately ₹660 crore in FY26 and is currently on track to reach around ₹880 crore in sales in FY27, according to regulatory filings and sources.
Moreover, Skillmatics has remained profitable, with margins of around 5-7 percent. The US continues to represent its largest market and contributes around 60 percent of its revenue, followed by the UK and India. Together, these three markets account for nearly 90-95 percent of the company’s consolidated revenue.
Former BCG consultant Dhvanil Sheth founded Skillmatics in 2016 and currently serves as the company’s CEO. Devanshi Kejriwal also co-founded the business and leads its product and content functions.
Meanwhile, the proposed Skillmatics deal reflects a broader revival in funding activity across India’s consumer startup ecosystem. Investors have renewed discussions around fresh investments in consumer-focused companies, although they are placing greater emphasis on scale, profitability, and disciplined valuations.
Consequently, startups are increasingly combining primary capital with secondary share sales in funding rounds. This structure enables companies to finance their next phase of expansion while simultaneously allowing early investors to partially realise their investments.
