Uolo, an Indian edtech platform that works with private K-12 schools to offer online learning programs to middle and low-income families, has raised $22.5 million in a funding round led by UAE-headquartered VC fund Winter Capital.
The vast majority of edtech startups operate in a business-to-consumer model and spend on ads to reach the parents and guardians of the students.
Uolo says it is reducing that cost by operating in a business-to-business-to-consumer model, working with private schools to let them offer online learning programs to their students and levy the charges as part of the school fees. The startup’s programs are also designed in tandem with the curricula of the partnered schools, making it easier for students to double down on learning the same lessons.
The Gurugram-based startup develops and provides tailor-made learning programs in coding and English speaking. Students can access these programs on their parents’ smartphones.
“We take edtech to the masses of India. And when we do that, the idea is that you make it cheap enough, affordable enough for people to be able to take it for their children,” said Pallav Pandey, chief executive of Uolo, in an interview with TC.
He said that the startup is able to provide its offerings to students at much more affordable prices.
Schools tying up with Uolo get an ERP platform called the Uolo School Platform for free. It works as a unified platform where schools can access fee management, report card management and attendance management on a single dashboard.
The ERP platform functions as an entry gate for Uolo as it allows the startup to create an ecosystem once schools start using it. This encourages parents or guardians to use the app to receive communications directly from schools — instead of using typical communication channels such as WhatsApp groups.
“What we have been able to do is get schools and students on one end of the platform, so now we need to get digital learning to flow through us,” Pandey said.
Founded in September 2020 by Pandey and his brother Ankur, Uolo has partnered with more than 8,500 schools across India and currently reaches 3.7 million students.
The $22.5 million funding has come through an equity-debt mix Series A round, seeing participation from Uolo’s existing investors Blume Ventures and new Dubai-based fund Morphosis Venture Capital — alongside Winter Capital. Although exact details of the equity and debt percentage involved were not disclosed, Pandey told TC that the debt element was in the form of optionally convertible debentures that would convert into equity over time.
The startup, which employs about 350 individuals, plans to utilize the investment to widen its reach to 50,000 schools across India over the next four years and expand its learning programs with courses across STEAM subjects in the coming months. For the latter part, it is looking to partner with education companies as well as people and entities developing high-quality content.
“The first wave of edtech companies in India have proven consumer interest in online education. However, they lacked a cost-effective distribution. We believe that there will be a new generation of edtech companies capable of building organic, low-cost distribution, allowing students to study at $10 per year rather than $10 per hour. Our investment in Uolo is based on our confidence in this type of company,” said Anton Farlenkov, Managing Director of Winter Capital, in a prepared statement.
