Ruangguru to raise $100m in General Atlantic-led round, source says

Ruangguru, an edtech startup based in Indonesia, is raising around US$100 million in a round led by private equity firm General Atlantic, a source familiar with the matter told Tech in Asia.

Photo credit: Konstantin Pelikh/123RF

The startup is expected to reach a valuation of US$500 million after the funding round, according to DealStreetAsia, which first reported about the fundraise, citing sources.

Ruangguru didn’t immediately reply to Tech in Asia’s request for comment.

The report also mentioned that SoftBank was interested in the fundraising but may give up to lead it due to its portfolio issues, notably WeWork. However, the source told Tech in Asia that there is no relation between the investors’ decision in this funding round and WeWork’s issue.

Founded in 2014, the startup offers education-based services such as video subscriptions, a private tutor marketplace, and corporate learning.

It claims that it has more than 15 million users, with more than 300,000 teachers offering services in more than 100 subject areas. It has covered 32 provincial governments and over 326 municipal and district governments in Indonesia.

It has entered the Vietnamese market by launching a platform called Kien Guru in October. The report said that the fundraising will likely support this strategy.

Ruangguru completed its seed round, led by East Ventures, in 2014. In 2015, it closed a seven-digit series A round led by Venturra Capital, followed by a series B round led by UOB Venture Management two years later.

Some local players in the scene include Zenius Education, which provides comprehensive self-learning materials for K-12 students. It reportedly raised US$20 million in a funding round led by Northstar Group in October.

Another one is HarukaEdu, which secured series C money in a round led by Susquehanna International Group in November.