There’s currently no information on how the company plans to use the funds raised and We are currently awaiting MeritNation’s response for more details on this. Update: Meritnation has told TechCircle that the investment raised will be used for creating and updating content, brand building and strengthening its sales team.
With this investment, Info Edge has invested around Rs 71.5 crore into Applect across five different rounds – a Rs 6.5 crore round in July 2008, Rs 5 crore round in May 2010, Rs 20 crore round in September 2011, Rs 30 crore round in February 2013 and a Rs 10 crore round now.
Following this investment, Info Edge has mentioned that it currently owns 55.81% stake in Applect, up from around 54% stake it owned in February 2013 after the Rs 30 crore investment round. That being said, its worth noting that Info Edge already classifies Applect as a subsidiary company, and MeritNation’s website has a banner stating that it is a “Naukri.com group venture”.
MeritNation is an e-learning site which caters to school students (Class 1-12) across various educational boards like CBSE, ICSE, Maharashtra state board (MSBSHSE), Karnataka state board (KSEEB), Tamil Nadu state board (Samacheer Kalvi) and others.
It also offers study material and mock tests for competitive exams like IIT JEE and NEET and free NCERT solutions, subject-wise synopsis and chapter-wise revision notes for classes 6-12. The company currently claims to have around three million users across nine countries.
Earlier this year, MeritNation had reported an operating revenues of Rs 9.82 crore for the financial year ended March 31, 2013, up 141% from Rs 4.07 crore in the previous fiscal. However, the EBITDA loss for the fiscal had also significantly increased to Rs 21.43 crore, up from Rs 5.44 crore loss in the same quarter last year.
Investment in Education Segment
– In September 2013, Simplilearn had raised $10 million in a series B funding round from Helion Venture Partners and existing investor Kalaari Capital.
– In May 2013, online education startup EduKart had raised $500,000 from a group of angel and institutional investors including Kima Ventures, AKM Systems, Vibhor Mehra, Amit Patni and Arihant Patni, and an undisclosed Stanford alumni. Existing investors One97 founder & MD Vijay Shekhar Sharma and former Providence Capital director Manish Kheterpal also participated in the round.