Chennai-based edtech startup Flinto has raised debt funding of Rs 6 crore led by InnoVen Capital. The funding will be used to expand the company's domestic presence, and to venture into international markets like Southeast Asia and the Middle East.
Commenting on the investment, Tarana Lalwani, Director at InnoVen Capital India, said in a press release, “This space has great potential as more parents look for activities that help children learn in a fun way. Our investment will support Flintobox’s expansion plans, as it looks to scale up.”
In December, Flinto had raised $7 million in Series A funding led by Lightbox, with participation from existing investors.
Launched in September 2013 by Arunprasad Durairaj, Vijay Babu Gandhi, and Shreenidhi Srirangam, who personally experienced the lack of quality early education in India, Flinto aims to change the way children learn and play by focusing on holistic development at their two primary spaces of learning — home and preschool.
The company's flagship product – Flintobox, is an age-appropriate activity box designed to engage children in a constructive manner. With this investment, InnoVen Capital aims to strengthen its focus on the education sector, particularly the emerging early education segment.
The company recently expanded into the unorganised pre-school segment through its enterprise offering, ‘FlintoClass’, which provides the tools needed to run a preschool. Ever since it was launched, FlintoClass has reached over 350 preschools across eight countries and continues to grow at a rapid rate.
Arunprasad Durairaj, CEO and Co-founder at Flintobox, said, “Having built a subscription business on strong unit economics that gives us optimal cash flow, debt investment makes a huge impact in scaling business rapidly. We're excited to partner with InnoVen for its aspiration and capability to support entrepreneurs to build large businesses in India and abroad.”
Last month InnoVen also invested in Mumbai-based Eruditus Executive Education, a firm that offers global executive education programmes. InnoVen Capital has also funded edtech companies like new unicorn Byju’s, and Embibe, which was recently acquired by Reliance.
Debt financing seems to be on the rise. There were 16 debt deals worth $242 million in the first quarter of 2018. In May, Mumbai-based Toppr also raised debt funding of Rs 15.5 crore led by Alteria Capital. The rise of venture debt funds like Trifecta Capital, InnoVen, and IntelleGrow now ensuring that startups do not have to resort only to equity finance to fulfill their capital requirements.