Suniel Shetty Makes Investment in Edtech Firm Klassroom Edutech

• ByStartupStory     |    June 5, 2023

Actor Suniel Shetty has invested an undisclosed amount for a stake in edtech firm Klassroom Edutech, which is betting on the hybrid model of offline and online classroom teaching for revenue growth. The actor, producer and serial investor is keen on health startups as well which could include those into bio-hacking. “The hybrid education model is the need for the hour and is aligned with the National Education Policy. Sometimes startups have good funding, strong ideas but lack marketing and reach. I can bring in the latter,” Shetty told Mint. The actor said Klassroom Edutech showed “remarkable growth (prospects) as much as 10x”

Founded in 2016, the edtech firm is currently engaged in its pre-series A funding round, with the goal of raising $1 million. Moving forward, the company has set its sights on a larger target of $5 million for the subsequent series A round. The founder, Shetty, expressed a strong interest in providing mentorship, enhancing pitch presentations, and facilitating connections between startups and various investors. He mentioned that he typically seeks a stake ranging from 10-16% in startups, with a potential for a higher stake if they are in the early stages.

With a network of 150 offline centers, this hybrid teaching company has successfully catered to 60,000 students across 500 cities. Over the past two years, the company has experienced remarkable revenue growth, reaching a 10X increase. Since its inception, the company has secured investments totaling $1 million from notable investors, including ah! Ventures Angel Fund, Hem Angels, Pavan Bakeri (Managing Director, Bakeri Group), Kishore Ganji (Founder, Astir Ventures), and others.

“The early investors, Suniel Shetty and few others are part of the pre-series A round of funding. The new capital will be used for improvement in technology, content and physical class room expansion,” said Dhruv Javeri, co-founder of Klassroom Edutech.

Shetty revealed that he has implemented an exit strategy and expressed contentment with achieving 2x-3x returns on investments, stating that not all ventures need to become unicorns. His investments come at a time when the edtech sector has faced a significant downturn in business following the surge of online education during the two years of the pandemic. According to a report by the Impact Investors Council (IIC), the edtech sector experienced a 39% decline in funding last year, dropping from $785 million in 2021 to $423 million.

According to the report titled “2022 In Retrospect: Indian Impact Investment Trends,” there was a notable decline in the number of transactions within the Indian market. The report highlights that the number of deals dropped from 38 in 2021 to 26 in 2022, with a more significant decrease compared to the 61 deals recorded in 2020.

The actor stated that he is willing to invest in startups that demonstrate positive cash flow, even if they are small in scale. While he has previously invested in the education sector, he mentioned that he intends to explore opportunities in other sectors as well. Shetty’s past investments include Bengaluru-based wellness firm Vieroots Wellness Solutions Pvt. Ltd, NFT marketplace Colexion, fitness app Fittr, men’s grooming brand Beardo, and several ventures in the hospitality industry.

“If the startup is cash positive and even if it is small , I will jump in. I will look at more startups going ahead but not necessarily in the education sector,” said the actor.

In the past, Shetty has made investments in a range of companies, including Bengaluru-based new-age wellness firm Vieroots Wellness Solutions Pvt. Ltd, an NFT marketplace called Colexion, a fitness app named Fittr, a men’s grooming brand known as Beardo, and various ventures within the hospitality industry.

The actor is currently reviewing different investment proposals and has expressed a potential interest in a health startup as his next venture. He mentioned being intrigued by the concept of bio-hacking, which is gaining popularity. Additionally, he highlighted the possibility of exploring the realm of preventive wellness. It is worth noting that in recent years, various actors, including Alia Bhatt, Deepika Padukone, Anushka Sharma, and Ranveer Singh, have also invested in startups.

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