Toddle, an Edtech SaaS (Software as a Service) business, is in talks with both new and existing investors to raise a new fundraising round of between $15–18 million.

In January 2023, Peak XV led a $17 million Series A investment in Toddle, in which Better Capital, Matrix Partners (now Z47), Trifecta Capital, Beenext, and Tenacity Ventures participated.

GSV Ventures is likely to co-lead the new funding, with strong participation from existing investors. A micro-VC from the US is likely to participate as well.

In the past, GSV Ventures has supported edtech companies like Classplus, AdmitKard, Coursera, PhysicsWallah, and Brightchamps. Notably, Classplus, a direct rival of Toddle, is also owned by Peak XV and Matrix (via Testbook). Other well-known companies in the edtech SaaS market include Teachmint and Graphy from Unacademy. 

A teaching and learning platform utilised by independent schools delivering IB (International Baccalaureate) and other progressive curriculum is Toddle’s initial product. The company was founded in 2019 by Deepanshu Arora, Gautam Arora, Misbah Jafary, Nikhil Poonawala, and Parita Parekh.

According to Toddle’s website, more than 2,000 schools in more than 100 countries, including the US, UK, Australia, China, and the UAE, presently use the platform, including both free and paid users.

According to sources, Toddle’s post-money value will be approximately $100 million. Through three funding rounds, it has raised $20 million so far.

While GSV and Z47 did not respond to inquiries, Toddle and Peak XV declined to comment on the story.

In the fiscal year that concluded in March 2023, Toddle’s operating revenue increased by 72% to Rs 32.35 crore, but its losses also increased, rising from Rs 19.45 crore to Rs 40.7 crore. FY24 results have not yet been filed by the company.

Edtech companies are slowly but noticeably making a resurgence after a steep drop in investment, thanks to a few significant acquisitions. PhysicsWallah recently raised $210 million, while Eruditus and upGrad raised $150 million and $60 million, respectively. Educational Initiatives (Ei) has $20 million in equity, Planetspark has $17 million, Bhanzu has $16.5 million in Series B funding, K12 Techno has $27 million in secondary funding, and upGrad has $35 million in debt.

TheKredible, a startup data analytics platform, reports that since 2024, edtech companies have raised $613 million in 37 acquisitions. This raises more than $456 million in 2023, but it is still far less than the $2.3 billion in 2022 and $5.8 billion in 2021.

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