Edtech startup Bhanzu recently secured $16.5 million (about Rs 139 crore) in funding, led by venture capital firm Epiq Capital, valuing the company at around $120-122 million.
Additional investors included Mumbai-based venture fund Z3Partners, alongside existing supporters Lightspeed Ventures and Eight Roads.
With this funding, Bhanzu plans to expand in the US and invest in generative artificial intelligence (Gen AI).
“We’ll be spending the majority of our capital on exploring the US market because I think we’ve gone deeper into it. We’ve found our product-market fit (PMF). I think expanding there and building a slightly larger leadership team is one priority,” founder and chief executive Neelakantha Bhanu said.
“Secondly, we have been at the forefront of Gen AI innovation for the last two years or so. We have launched quite a lot of products. I think we’ll be doubling down on that and building more elaborate asynchronous products,” he said.
The startup reports eightfold growth since its 2022 funding round, as well as positive cash flow and increasing traction in markets like India, the US, the UK, and the Middle East.
Notably, India and the US each contribute about one-third of Bhanzu’s revenue, with the remaining revenue coming from other global markets, according to Bhanu.
Launched in 2020, the Hyderabad-based startup provides a math curriculum through online courses for students from kindergarten to Grade 9. Bhanzu aims to achieve a revenue target of Rs 100-120 crore this financial year.
“Our incremental spends will go into expansion in global geographies instead of funding customer acquisition costs, which I think, unfortunately, a lot of other companies have done,” he added.
To date, Bhanzu has raised a total of $33.5 million in funding.
In recent months, other edtech companies such as PhysicsWallah, Eruditus, and Upgrad have also raised new capital.
Commenting on the investment, Chinmay Katdare, partner, Epiq Capital said, “Bhanzu has evolved into a global math education platform using its unique pedagogical approach combined with the use of advanced AI to shape learning outcomes across geographies. Additionally, Bhanu has built a solid team and a robust business model, which continues to have a strong growth trajectory while being cash flow positive.”
“This investment fits into our thesis of outcome-driven education where the strength of the product drives growth. This is evident in the positive unit economics and global growth being witnessed by the company. We believe the company is currently at an inflection point to turbocharge growth in a profitable and sustainable manner,” said Rishi Maheshwari, managing partner, Z3Partners.
