[Funding alert] Cuemath raises $57M led by Alpha Wave; doubles valuation to $407M

Google-backed math learning startup CueMath has raised $57 million in a fresh round led by Alpha Wave Global at a valuation of $407 million–a more than 2X jump in valuation.

The company said the new capital will fuel strengthening product-pedagogy outcomes, hypergrowth initiatives, acquisition and partnerships, and catalyse its efforts to build a strong global math brand.

Led by Alpha Wave, this fundraise includes all its existing investors, including Lightrock India, Sequoia Capital India, Alphabet independent growth fund CapitalG, Manta Ray, and Unitus.

Founded in 2013, the Bengaluru-based edtech player is currently present in more than 70 countries. The startup aims to expand to over 100 countries by FY’23. This plan includes bolstering its presence in North America, APAC, the UK, Europe, Middle East, and capturing markets in Africa and South America. In September 2021, Cuemath appointed former Swiggy COO Vivek Sunder as its CEO.

Responding to the latest investment, Vivek Sunder said, 

“Cuemath’s latest fundraise is a significant feat given the present industry trends. Valuations have become more realistic with rationalisation hitting the market; only those growth-stage startups with solid business fundamentals can now establish trust with VCs."

"Therefore, this substantial inbound interest from all our existing investors validates Cuemath as a knowledge expert in the global after-school math tutoring market and signals acknowledgment of the developments over the past few quarters," he added.

Manan Khurma, Founder and Chairman, Cuemath, added, "What distinguishes Cuemath from almost every other edtech company is that we focus on one thing and one thing only--deep math learning outcomes. In every Cuemath class, the student experiences a powerful and personalised combination of a highly visual math curriculum delivered by a rigorously trained, caring teacher. This has enabled Cuemath to have one of the best retention rates in the industry (80 percent), with half of all new admissions happening via referrals. These industry-leading metrics encouraged all our investment partners to support us yet again in our global math mission.”

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Cuemath’s new funding round is a positive change in the industry, not only in terms of the investment size but also in investor participation.

Anirudh Singh, MD at Alpha Wave Global, commented, "Cuemath’s ability to successfully deliver outstanding learning outcomes through its proprietary platform and top-tier pedagogy has continued to impress us. Not only in India, its success in key international markets like the US, the UK, Middle East, and Singapore, while maintaining high-quality unit economics differentiates the company in a competitive and dynamic edtech market. High-quality adept teachers addressing a global need for specialised focus on math tutoring create a strong flywheel effect. We are excited to lead this investment as Cuemath deepens its penetration across global markets."