Edtech startup Toppr has raised $35 million from Kaizen Private Equity and existing investors SAIF Partners, Helion Ventures and Eight Roads Ventures.
The funding will be used on advertising and branding, as reported by other media sources.
The announcement comes a few days after its rival Byju's raised $540 million from Naspers, a global internet and entertainment group, along with participation from Canada Pension Plan Investment Board (CPPIB).
"We have been able to get six million downloads and one million monthly active users despite better branding by Byju's and our packages priced higher. We now want to increase our marketshare, especially among students in lower grades,' said Zishaan Hayath, CEO of Toppr.
The e-learning market is vast in India with corporate professionals and startups alike doing well in the market. According to a report, the online education market in India is poised to grow at a CAGR of 20.02 percent during 2017-2021 period.
Founded in 2013 by Hayath and Hemanth Goteti, Toppr started by offering courses to Class XI and XII students. The company caters to students between fifth and 12th grades, and offers questions, solutions, concepts, practice tests and videos for students signed up on the app and prepare them for competitive entrance exams such as IIT JEE Mains and Advanced, BITSAT, and NEE.
'œThe market is big enough with even offline fragmented education businesses bringing in millions of dollars in revenues,' said Sandeep Aneja, managing partner at Kaizen PE.
"Byju's spend on creating content for edtech is good for the industry. The next wave of edtech in the country will also happen in tier II and tier III cities,' he added.
This Mumbai-based startup had previously raised Rs 15.5 crore in debt funding led by Alteria Capital in May this year.
Toppr has over 8,000 educators with distribution in 15 cities and claims to have over two million registered users, and over one million app downloads.