Even amidst the unprecedented times of the Covid19, one sector that has seen exponential growth is the EdTech industry. With the nationwide lockdown, as announced at the end of March, and many other successive lockdowns and strictures in numerous Indian metropolitan cities even after that, online education and e-learning platforms have seen an astonishing adoption and growth. This, however, is not surprising because the educational institutions are shut, making 1.5 billion students resort to a variety of digital education sites like Toppr to ensure learning continues. The company had seen a good growth before it was acquired by Byju's on July 24, 2021 in a deal consisting of cash and equity shares, as it acquired Great Learning.
According to a report by BARC India and Nielson, there has been a 30% increase in the time spent on education apps on smartphones since the lockdown. The Edtech sector worth Rs 15,000 crore, has been battling challenges with the low B2C market penetration. The current surge of usage is thus, proving to be pivotal.
Edtech startups are attracting many more investors in the post-Covid19 world, thanks to the increased adoption of digital learning during the lockdown. The learning app Toppr, focused on students in the class 5 to 12 and had managed to raise around $112.1 million till July 29, 2020, its Series D funding round. Toppr had previously competed with unicorn companies like Byju, Unacademy, Vedantu, Meritnation and more.
Toppr - Company Highlights
|Founders||Zishaan Hayath and Hemanth Goteti|
|Annual Revenue||$352.9M per year|
|Products & Services||Toppr Learning App|
Toppr is a Mumbai-based Edtech startup, which had seen a 100% growth in paid users on a monthly basis, with free user engagement witnessing a 100% spike. The company was founded in 2013, and offered questions, solutions, concepts, practice tests and videos to students. It also prepared them for competitive entrance exams such as IIT-JEE mains, BITSAT and NEET.
When the platform announced free access to live classes and video classes, the CEO and Founder of Toppr, Zishaan Hyath said, “in the view of evolving situation around the Covid19 pandemic, many schools are shut, hence why we are making Toppr live classes completely free for all students in classes 5 to 12. Besides that, our video classes have always been available as a free learning resource".
Growth of Toppr During Covid Pandemic
The Edtech firms have also taken to the digital media to acquire users and inform people about the free live classes on offer. There had been a 128% growth in digital ad spends by edtech apps during the lockdown, as per the BARC Nielson report. It is not just the big players spending on advertising as they are also getting more users abroad.
Amid Covid there were more than a dozen Edtech startups including Byjus, Vedantu, etc., that have raised funding as investors through platforms that have registered strong growth during the pandemic. The learning sessions on its app per month had also witnessed a 2x growth, which was 14 to 15 million before Covid and became 32 million post-lockdown.
Toppr already had around 60,000 students on its learning platform and was aggressively seeking to bring around 2.4 lakh students onboard. The Edtech segment is likely to be on a roll ahead as investors globally are expected to put $87 billion in the world market over the next 10 years. The Indian market is also believed to grow at over 20% per annum to hit $2 billion size by 2021.
Toppr - Subscriptions
The company had emerged as the highest traffic destination for K-12 learning and hosted over 1 million session every day. The community of 50,000 educators from across the country had contributed for the platform to over 35 lakh learning pieces, including questions, solutions, concepts, games and videos curated for the students.
This is was because of their annual subscription for the academic year 2020 to 2021 on Toppr starts at Rs 20,000 which is cheaper than its competitors, as Vedantu annual subscription for all subjects for a class 10 student costs Rs 48,599. Given the high costs the penetration of Edtech platforms is limited, which is why Toppr decided to bring down the cost of their subscription to get more users to the platform.
They changed the product strategy and have created packages of shorter duration to help people tide over the current crisis. They now have a 3 month and six month package starting at just Rs 3000. Both Toppr and Byju’s have registered an increase in paid users during the lockdown, Toppr has seen a four-fold increase, while Byju’s has seen its paid subscriptions double.
Toppr - Educational Products
Apart from the main product which is the school learning app the money will also go towards our product for teaching coding to kids and their school operating system (OS) built for teachers and administrators. Toppr School OS is an app for school and teachers through which they can map curriculum, plan lessons and mange class timetables, automate attendance, assign homework.
Toppr school is an artificial intelligence-based Operating System to run “in school” and “afterschool” learning, creating a standardized and personalized experience. This helps in continue to engage and explore various features and includes parents and students are trying online learning as a go to learning resources in these difficult times.
It also helps in taking tests, correct test papers, etc. during or after school hours to save time. On the other hand, the coding product which is called as Toppr codr launched recently is an opportunity of at least $50 million if let’s say the overall opportunity for us in a digital learning is around $200 million.
Toppr - Funding
Toppr raised total of $112.1M in funding over 11 rounds. Their latest funding was raised on Jul 29, 2020 from a Series D round as edtech startups continue to benefit from the pandemic-driven online learning boom. A Dubai-based investment firm, Foundation Holdings, led the fresh investments into the Mumbai-based e-learning platform. Existing investors such as Kaizen Private Equity also participated, according to a statement.
Toppr - Growth and Revenues
The operating revenues of Toppr grew by 49.5% to $11.44 mn (Rs 84.3 crore) during FY20 from $7.65 mn (Rs 56.4 crore) earned in FY19. Furthermore, the income from financial assets of Toppr also witnessed a 46% growth to nearly $814K (Rs 6 crore) during FY20.
Looking at the side of expenses of the company, Toppr spent around $27.63 mn (Rs 203.7 crore) in total during FY20. Thus, it has registered a 31.6% increase when compared to the aggregate costs, which were Rs 154.8 crore during FY19. Coming to the unit level, Toppr has spent Rs 2.41 to earn a single rupee of revenue during FY20, which can be stated as a marginal improvement from what it was during FY19.
Who is the founder of Toppr?
Toppr edtech startup has been founded by Zishaan Hayath and Hemanth Goteti in 2013.
Who are Toppr's competitors?
Some of the top competitors of Toppr are:
- Khan Academy
What is Toppr codr?
Toppr codr is an app for learning coding made specifically for kids.
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