Edtech

Bhanzu Secures $16.5 Million in Series B Funding, Eyes US Market Expansion

• ByStartupStory     |    November 11, 2024

Math-focused edtech platform Bhanzu has successfully raised $16.5 million in a Series B funding round led by Epiq Capital and Z3 Partners, with participation from existing investors Lightspeed Ventures and Eight Roads. The fresh funds will be channeled towards Bhanzu’s expansion plans, particularly targeting the US market, as the startup continues to grow its presence internationally.

The Hyderabad-based company, founded in 2020, offers experiential math learning programs aimed at children aged 5 to 16. Bhanzu’s curriculum is designed to foster cognitive skills through interactive math courses. To date, the company has trained over 30,000 students globally, spanning regions like India, the US, the UK, and the Middle East.

“The US maths education market has significant potential, but it is dominated by large, billion-dollar companies that have not innovated their curricula or effectively embraced technology. This gap creates a significant opportunity for Bhanzu to revolutionise maths education in the US,” said Neelakantha Bhanu, co-founder and CEO of Bhanzu.

Bhanzu has now raised a total of over $33 million, following a $15 million Series A round led by Eight Roads Ventures in September 2022. The latest funds are set to propel the company’s growth trajectory, which Bhanzu claims has already seen an 8x increase since the last funding round. The startup reports having achieved positive cash flow and a strong product-market fit across its operating regions.

However, Bhanzu’s recent financial performance reflects the high costs of rapid expansion. In FY23, the company’s operating revenue surged by more than 13 times to Rs 47.33 crore, while losses increased nearly 18 times, reaching Rs 70.99 crore. The startup has not yet filed its annual financial statements for FY24.

Despite the challenges, Bhanzu remains optimistic about its growth potential in the competitive edtech landscape, where it faces rivals like Cuemath, Unacademy, Adda247, and Skillmatics. As the edtech sector recovers from a significant downturn in funding, Bhanzu’s Series B round adds to a series of recent high-profile deals. This includes PhysicsWallah’s $210 million round, Eruditus’ $150 million raise, and upGrad’s $60 million funding round, signaling a cautious revival in edtech investments.

Follow Startup Story