10 Minute School raises Tk 61crore in Pre-Series A round led by Conjunction Capital
Bangladesh's leading K12 and skills development edtech platform 10 Minute School (10MS) today announced the successful completion of its Pre-Series A funding round with Tk 61 crore raised, marking a significant milestone in its mission to provide high-quality and affordable education to millions of students nationwide.
The round was led by venture capital firm Conjunction Capital, along with participation from returning investors Peak XV's Surge (previously Sequoia Capital India), the Sovereign venture fund of the Bangladesh Government, Startup Bangladesh Limited, Marquee Angel investor, the Founder & CEO of Indian Unicorn CRED, Kunal Shah, veteran Bangladeshi Angel investor, the Managing Partner of MyAsiaVC, Sajid Rahman as well as several other local angel investors.
This is the highest seed-stage funding for a Bangladeshi startup, bringing 10MS's total funding to Tk78 crore to date, according to a press release.
"At 10 Minute School, our vision has always been to democratize education. This funding not only validates our mission but also fuels our efforts to create a lasting impact on the K12 and skills development landscape in Bangladesh," said Ayman Sadiq, Co-founder and CEO of 10 Minute School.
"With the support of our investors joining this round, we are poised to reach even greater heights and empower the future of our nation for a Smart Bangladesh as part of the Vision 2041," he added.
"Fundraising in the midst of a VC winter and a global economic downturn was an incredibly challenging experience, one that tested our resilience as founders. It was a humbling yet character-building exercise that reinforced our belief in the transformative power of education," said Mirza Salman Hossain Beg, Co-founder and COO of 10 Minute School, adding, "We're grateful to our investors for recognizing our potential and joining us on this journey to make quality education accessible to all while we build an enduring business."
Kirill Kozhevnikov, Managing Partner, Conjunction Capital (ex India Partner of RTP Global), said, "We are thrilled to lead this pivotal investment round in 10 Minute School. This marks our first venture into the Bangladesh market, and we are confident that this partnership will redefine the education landscape in the country. The passion and innovative drive of 10 Minute School's team align perfectly with our values, and we are excited to contribute our global insights and support their mission to provide accessible, high-quality education for all."
Strategic Investment Partnerships - Explained!
Conjunction Capital's involvement in this funding round underscores the immense potential of 10MS in transforming education not just in Bangladesh but across the region. Conjunction Capital, a UAE-based early-stage $50M technology fund with a focus on frontier markets, brings strategic insights and global expertise to propel the startup's growth trajectory further.
Surge by Peak XV's continued investment reaffirms their confidence in 10MS's capabilities to reshape the education sector. With its extensive experience in nurturing startups, the Surge rapid scale-up programme continues to play a crucial role in accelerating the startup's expansion and amplifying its impact in the region.
"10MS and their mission to democratize education exemplify our continued commitment to catalyzing positive change. We're thrilled to continue supporting 10MS's journey towards building the Education Stack of Bangladesh." - Sami Ahmed, Managing Director, Startup Bangladesh Limited,
Startup Bangladesh Limited, the $50M government-backed venture fund of Bangladesh, joined the 10MS cap table to endorse the Government's commitment to supporting the startup ecosystem and especially the education sector, as it will play a pivotal role in shaping the next generation of Bangladesh toward a Smart Economy.
Edtech in Bangladesh and role of 10 MS
With a youth population of more than 84 million, Bangladesh holds the 8th largest student demographic in the world despite a struggling education sector crippled by learning loss from in-person learning restrictions during COVID-19. Meanwhile, as the fastest-growing economy in the world among nations with over $100B GDP, it enjoys the perfect window of opportunity to accelerate its growth trajectory and bridge the development gaps across all major sectors within the current decade. Bangladesh is expected to be a Trillion-dollar economy within the next decade, according to BCG's latest report on the country's growth outlook.
Against this backdrop, Bangladesh's edtech sector has experienced exponential growth in recent years, driven by the country's young and digitally-native population. With over 42 million students in the K12 education system and another 8 million in the tertiary and continuing education market, the demand for online learning solutions has surged, presenting a unique opportunity for innovative platforms to make a significant impact on the nation's development. The government's emphasis on technology in education and the rise of digital literacy initiatives further contribute to the favorable economic climate for edtech startups in Bangladesh.
As the largest online learning platform in Bangladesh, 10MS believes in the limitless possibilities of truly educated and skilled human beings. The startup's mission is to build the Education Stack of Bangladesh. Since its inception in 2015, 10MS has been committed to revolutionizing education accessibility, bridging the gap between traditional learning methods and the digital age. Through its App and Web platforms, the startup offers a diverse range of educational resources, including live classes for K12 students, university admission test preparation, and skills development programs. Today, the platform has over 35,000 recorded video lessons and offers over 82,000 quizzes and additional resources like model tests, ebooks, and lecture notes, covering the entire national curriculum. By embracing locally developed technology and leveraging expert educators, 10MS impacts the lives of over 14 million students annually, equipping their learners with the knowledge and skills necessary to thrive in a rapidly evolving world. 52% of 10MS learners are from rural and semi-urban areas outside the capital city, while 34% of the students are girls. This shows the massive potential of 10MS to bridge the gap in the education system with significant economic and social impact.
How 10 MS sustained growth
Since last year, the overall momentum of startups across the world has been affected both due to the slowing down of the economy and the lack of funding. Edtech was among the hardest-hit industries, with only $0.5 billion in funding raised in H1 2023 worldwide, compared to $1.8 billion in 2022. Despite these macro realities and Bangladesh being a very early-stage startup ecosystem, 10MS focused on iterating its product verticals and optimizing key business unit economics.
As a result, 10MS's revenue doubled in H1 2023 compared to last year. The startup also enjoyed three cash flow positive months due to 4x EBITDA optimization, maintaining single-digit blended CAC (Customer Acquisition Cost), 2.5x paid user retention of their K12 live cohorts compared to 2022, and a 1.5x ARPU increase this year. The 10MS app has over 6.7 million downloads, 3.2 million monthly active learners, and over 650,000 paid users to date.