Edtech Startup byteXL Raises $5.9 Mn Series-A Funding

In its Series A fundraising round, byteXL, an edtech business, raised $5.9 million (about INR 49 crore) with support from the Michael and Susan Dell Foundation, the non-profit organization founded by the Dell family. Kalaari Capital led the round.

The firm intends to reach out to more colleges and universities nationwide and grow its staff with the additional funding. Additionally, a portion of the earnings will be used to launch new digital tools and technologies and to develop new products.

“We intend to establish collaborations with additional colleges and universities throughout the nation,” stated Karun Tadepalli, the CEO and co-founder of Karun byteXL.

“We do not only teach coding. Our confidence in providing young engineers with the newest knowledge and tools will increase as a result of this financing. It will facilitate a quicker close of the gap between academia and industry,” he said.

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Through partnerships with more than 26 colleges and universities, the platform has trained over a lakh students in the latest software technologies. According to him, partner universities have seen an increase in student enrollment and better placement rates as a result.

In response to market demands, the firm recently partnered with Microsoft to launch a brand-new B.Tech CSE degree in artificial intelligence and machine learning.

According to byteXL, they have raised a total of $1.2 million (around 10 Cr) in funding to date and this fresh funding will take their tally to $7.1 million (around 59 Cr). In the larger edtech market, it faces off against companies including Practically Trilogy Education Services, UpGrad, Seekho, BYJU’S, and Unacademy.

According to Tofler, byteXL reported a net profit of INR 1 Cr for the fiscal year that ended in March 2023 (FY23). Its operational revenue of INR 15 Cr was reported, a 3X increase over its operating revenue of INR 5 Cr in FY22.

It is important to remember that the fundraising is taking place in the midst of a severe financial shortage in the Indian edtech industry.

In contrast to the pattern previously observed by VCs and PEs, who poured billions of dollars into the sector during the pandemic’s peak, the industry has seen a decline in investor interest as post-lockdown institutions and universities have reopened.

In addition, a number of problems within the industry’s startups exacerbated the situation. Among other things, this problem comprised high capital burn, growing losses, and flimsy governance barriers.

Not to add, throughout the previous two years, the industry was among the top ones in terms of employee layoffs. Remarkably, since 2022, up to 24 edtech companies have let go of almost 14,616 workers.

Heavyweights in the industry, such as BYJU’S, Unacademy, and UpGrad, continue to report significant losses on the financial front, and in the previous two years, the lack of funding has forced the closure of businesses like Udayy, Supen Learn, and DUX Education.

A report from 2023 states that Indian edtech firms raised $283 million in 2023 compared to $2.4 billion in 2022, representing a sharp 88% year-over-year (YoY) reduction. Additionally, the number of deals fell by 45.91% YoY from 257 in 2022 to 139 in 2023.

With this large investment, byteXL will be able to improve its services and reach more people in the IT education market. With the money, the firm will be able to hire top-notch instructors, create extensive curricula, and invest in cutting-edge technology to provide engineering students with an unparalleled learning experience.

The expanding relevance of skill development in the tech industry is demonstrated by the involvement of well-known investors like Kalaari Capital and the Michael & Susan Dell Foundation. It is anticipated that byteXL would close the skills gap between academic education and the abilities that companies want by emphasizing practical, industry-relevant training.

As it grows, byteXL hopes to collaborate with more engineering schools around the nation to give students the tools they need to succeed in a cutthroat labor market. This achievement promises a better future for the upcoming generation of IT workers and represents not just a significant milestone for byteXL but also a larger trend towards creative solutions in education technology.