Bhanzu Raises $16.5 Million to Expand in the US and Transform Math Education

• 11 Nov 2024

Bhanzu Raises $16.5 Million to Expand in the US and Transform Math Education

 

In a positive development amid the ongoing challenges in the edtech sector, Bhanzu, a math-focused educational startup, has successfully raised $16.5 million (approximately INR 139 crore) in its Series B funding round. The round was led by venture capital firm Epiq Capital, with additional participation from Mumbai-based Z3Partners and existing investors Lightspeed Ventures and Eight Roads.

 

The startup plans to utilize the new funds to further bolster its presence in the United States, a market it sees as ripe for innovation in math education. Founded in 2020 by Neelakantha Bhanu, Bhanzu offers an AI-driven curriculum designed to help students improve their math proficiency. The curriculum is the result of over four years of data collection and research, providing interactive and customizable learning experiences for students.

 

In addition to India, Bhanzu has expanded its reach to markets in the US, the UK, and the Middle East. According to founder and CEO Neelakantha Bhanu, "The US math education market holds 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 substantial opportunity for Bhanzu to revolutionize math education in the US."

 

Bhanzu's latest funding round comes over two years after the startup raised $15 million in its Series A round, led by Eight Roads Ventures. Since then, Bhanzu has demonstrated impressive growth, reporting 8x revenue growth, positive cash flow, and a strong product-market fit across multiple geographies.

 

This Series B round also arrives at a time when the Indian edtech sector faces significant headwinds. While edtech giant BYJU'S is currently undergoing insolvency proceedings and Unacademy is reportedly exploring merger or acquisition options, Bhanzu's progress offers a refreshing contrast. Despite the overall decline in funding for Indian edtech startups — with total investments plummeting 88%, from $2.4 billion in 2022 to $283 million in 2023 — Bhanzu is bucking the trend, securing capital for expansion.

 

Interestingly, edtech unicorn Physics Wallah (PW) raised $210 million in its own Series B funding round in September 2023, underscoring that there are still growth opportunities in the sector for innovative and resilient players. Similarly, Bengaluru-based startup Kreedo raised $4 million in its Series A round earlier this year, further illustrating that investment in promising edtech companies continues, even in a challenging market.

 

With the new funding, Bhanzu is poised to further disrupt traditional math education, leveraging technology to provide more engaging, personalized, and scalable learning experiences for students worldwide.