Edtech startup Mana.bo is trying to disrupt the $10B Japanese online tutor market

Online tutor marketplaces are nothing new, in Japan or elsewhere in the world. But Tokyo-based Mana.bo takes online tutoring one step further by providing a set of tools for direct communication between student and teacher. The idea for Mana.bo was born after founder and CEO Katsuhito Mihashi, an experienced juku (cram school) teacher, wanted to find a better way to provide guidance to students who needed his help after normal working hours. That, combined with problems such as a student unable to find a cram school near them, or being unable to afford one, provided the inspiration for the app.

Mana.bo allows students to contact tutors at any time with a problem on a particular subject. The tutor can take a look at it and provide advice and direction through text or voice messages. Through the app, the student and tutor also share a whiteboard, further enhancing the effectiveness of the “class.”

The startup secured JPY 330 million (US$2.76 million) in a series A round in September 2014 from Benesse Holdings, Nissay Capital, and MUFJ Capital. It had previously struck up a partnership deal with Benesse, a Japanese company that specializes in school textbooks and correspondence education.

After the series A round, Mana.bo has been busy in more ways than one. CFO Koichi Tsunoda tells Tech in Asia the startup gets 500 questions per day from students, with 60,000 questions so far. “We have a goal of reaching 500,000 questions in the second half of financial year 2016,” he says. With available tutors measuring in the thousands, the company aims for a student question to be answered within two minutes. Later, it plans to move towards features like automated recommendation of personal tutors.

Mana.bo CFO Koichi Tsunoda

No student left behind

A new feature currently under development is a means to reach “students not academically inclined,” according to Koichi. That’s students who might not be as proactive in seeking tutor help as the startup’s current user base. This will give Mana.bo access to an even larger segment of its intended audience, he says.

Another new feature, also aiming at reaching different segments of the market, will help the company collect more data from personal tutoring. As Koichi explains, the startup is negotiating multiple potential partnerships with major education companies in Japan, such as its ongoing partnership with Benesse.

Compared to a traditional juku service, Mana.bo can leverage technology to offer a wide range of services. It not only facilitates contact between students and tutors, but also provides data for parents to help them judge their child’s performance. Past sessions are archived so students can return to them later if needed.

The startup has also been able to take advantage of the proliferation of smartphones and tablets in Japan’s student population, helping it gain users in what is a very lucrative market. In 2014, the juku industry, which helps Japanese students prepare for high school and university entrance exams, was worth US$10 billion. This means tough competition but also ample opportunity for disruption.

Koichi pitched for Mana.bo in Tech in Asia Tokyo 2015 Arena competition. The judges had questions about the availability of tutors, as Mana.bo essentially uses the Uber model, as well as about the startup’s pricing model. Other concerns were the maintenance of tutor quality, which Koichi said they manage by doing extensive screenings of tutors. Finally, Koichi clarified that all sessions are recorded in such a way that other students can revisit them and move around freely in them, which maximizes their usefulness and effectiveness.

It must have been enough to convince our panel of judges, since Mana.bo is the winner of our Tech in Asia Tokyo 2015 Arena!

This is part of the ongoing coverage of Tech in Asia Tokyo 2015, our annual conference taking place on September 8 and 9.