Edutech platform Simplilearn is in talks to raise $100-150 million in a funding round from global investors to raise primary capital for business expansion and to allow early investors leeway for a partial exit.
The funding round is likely to be completed in a month and would value the startup at $700 million, sources told The Economic Times.
“The company is looking to raise a larger round and will give some of its early backers a partial exit. This round will also help it raise fresh funds to expand its product offering,” one source said.
Another source added that it is looking at the valuation of around $700 million and more.
Moneycontrol could not independently verify the report.
The company is banking on increased infusions from global and domestic investors in high-growth edutech companies amid the coronavirus pandemic and lockdown as interest in online education options boomed.
The space is worth $117 billion with around 360 million learners in India, as per a report by the Indian Private Equity and Venture Capital Association (IVCA) and PGA Labs.
The report noted that in 2020 investments in the space jumped 300 percent compared to 2019, and 92 edutech startups attracted investments, including seed funding for 61 of these companies. Big winners were Byju’s (raised $2.32 billion) and Unacademy ($354 million)
Simplilearn has earlier raised $28 million from Helion Venture Partners, Kalaari Capital and Mayfair Fund, and $3 million from InnoVen Capital.
Simplilearn, Mayfair, Kalaari and Helion did not respond to queries, as per the report.
Simplilearn is an online training platform in areas such as cloud computing, cybersecurity, data science, digital marketing, and project management. Founded in 2009, it shifted to the online model in 2015 and has since entered markets such as Australia, Singapore, and the United States.