Edtech SaaS startup Toddle set to raise $15-18 Mn

Edtech SaaS (Software as a Service) startup Toddle is in discussions with new and existing investors to raise a fresh funding round of approximately $15-18 million, according to multiple sources familiar with the development.

In January 2023, Peak XV led a $17 million Series A round in Toddle, with participation from Tenacity Ventures, Trifecta Capital, Matrix Partners (now Z47), Beenext, and Better Capital.

“GSV Ventures is likely to co-lead the new funding, with strong participation from existing investors,” said a source requesting anonymity as talks are private. “A micro VC from the US is likely to participate as well.”

GSV Ventures had previously backed edtech startups such as PhysicsWallah, Coursera, AdmitKard, Brightchamps, and Classplus. Notably, Peak XV and Matrix (via Testbook) are also investors in Classplus, which directly competes with Toddle. Teachmint and Unacademy’s Graphy are other notable players in the edtech SaaS space. 

Founded in 2019 by Deepanshu Arora, Gautam Arora, Misbah Jafary, Nikhil Poonawala, and Parita Parekh, Toddle’s first product is a teaching and learning platform used by independent schools offering IB (International Baccalaureate) and other progressive curricula.

According to Toddle’s website, the platform is currently used by more than 2,000 schools—including both free and paid customers—in over 100 countries including US, UK, Australia, China, and the UAE.

Sources indicate that Toddle will be valued at around $100 million post-money. To date, it has raised $20 million across three funding rounds.

Toddle and Peak XV declined to comment on the story while queries sent to GSV and Z47 did not elicit any response. 

For the fiscal year ending March 2023, Toddle’s revenue from operations jumped 72% to Rs 32.35 crore, while its losses also surged, from Rs 19.45 crore to Rs 40.7 crore. The company is yet to file FY24 results.

Following a sharp decline in funding, edtech startups are making a slow but notable comeback with a few large deals. Recently, PhysicsWallah raised $210 million, followed by Eruditus and upGrad, which raised $150 million and $60 million, respectively. The list also includes K12 Techno’s $27 million secondary, upGrad’s $35 million debt, Educational Initiatives (Ei)’s $20 million equity, Planetspark’s $17 million and Bhanzu’s $16.5 million Series B funding. 

According to startup data intelligence platform TheKredible, edtech firms have raised a total of $613 million across 37 deals so far in 2024. This surpasses the $456 million raised in 2023 but falling well short of the $2.3 billion in 2022 and $5.8 billion in 2021.