Toppr.com, the online test preparation platform with over 500K enrolments already, is now announcing a fresh $2 Million round of VentureDebt financing from Innoven Capital, reports Livemint.
This round comes six months after Toppr raised a $10 Million Series B round from Fidelity Growth Partners with participation of existing investors SAIF Partners and Helion Venture Partners. Prior to that, the company had raised $2 Million from SAIF and Helion and acquired EasyPrep, a customized exam creation platform for schools.
VentureDebt rounds, if you aren’t aware, are financing rounds taken by startups as loans when they fell their business models are robust enough for paybacks. These rounds do not require startups to dilute any equity, as against venture capital funding. Other notable Indian startups to have gone the Venture Debt. way include InMobi and FreeCharge among others.
Zishaan Hayath, who is a co-founder and also an active angel investor, said that Toppr plans to use the funds for two acquisitions. His investee companies include the likes Ola, Zo Rooms and DoorMint among others.
Toppr offers online test preparation material for students who are appearing for engineering and medical entrance examinations.
It claims that more than 40% of its users are from Tier II and Tier III cities which lag quality teaching and education. It also claims to have more than 1,50,000 students enrolled for the test preparation.
The entrance exam preparation market for K12 students is growing about 20% every year and is pegged at $8 billion. The Indian test preparation market is expected to be a Rs 10,000 crore market, dominated by offline players.
