Which EdTech startups raised money?

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EdTech funding stabilized in 2024 after its pandemic decline, reaching $6.3 billion globally.

The sector shifted toward AI-powered solutions and later-stage investments, with companies like PhysicsWallah raising $210 million and Eruditus securing $250 million. Investors concentrated on scalable models combining artificial intelligence with embedded finance, marking a clear departure from the broad-brush funding approach of 2020-2022.

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Which EdTech startups raised funding in 2024 and 2025 so far?

The funding landscape concentrated around AI-driven platforms, embedded finance solutions, and premium live-learning experiences rather than traditional content providers.

Leap (LeapScholar) dominated early 2025 with a $65 million Series E, positioning itself as the comprehensive platform for international student mobility. The company combines test preparation, university admissions guidance, and student lending in one ecosystem. MagicSchool AI raised $15 million in Series A funding to expand its generative AI teaching assistant that automates lesson planning and quiz creation for K-12 educators.

Campus secured $46 million in Series B funding for its model of live online courses taught by professors from Princeton, Stanford, and Howard University. PhysicsWallah achieved India's largest single EdTech round with $210 million in Series A funding, focusing on affordable exam preparation at massive scale. Eruditus raised $250 million in growth funding to expand its executive education partnerships with top-tier universities globally.

Zum closed a $75 million Series F round to scale its in-home tutoring network, while SpringHealth raised $100 million in Series C for mental health applications targeting students and workforce development. These companies represent the sector's shift toward scalable, technology-enhanced services rather than pure content distribution.

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How much funding was raised in total across the EdTech sector in 2024 and 2025 to date?

Global EdTech funding reached $6.3 billion in 2024, marking stabilization after the pandemic-era decline, while Q1 2025 recorded $410 million across 1,153 deals.

The 2024 figure represents a significant recovery from the sector's lowest point since 2014, when venture funding had dropped to $2.4 billion according to Holon IQ data. Deal count actually increased from 915 to 1,153 transactions, indicating investors wrote larger average checks to fewer, more proven companies. The average deal size in Q1 2025 reached $7.8 million, substantially higher than previous quarters.

Brighteye Ventures' comprehensive analysis shows the $6.3 billion included formal education, lifelong learning, and workforce upskilling segments. North America dominated with $4.7 billion in funding, while Europe contributed $0.8 billion and India saw significant activity with multiple $100+ million rounds. China maintained $2.9 billion in funding despite regulatory pressures affecting local EdTech companies.

The funding concentration shifted markedly toward Series A and later rounds, representing 65% of total capital deployed. Pre-seed and seed funding declined by 15-20% year-over-year, reflecting investor preference for companies with proven product-market fit and scalable revenue models.

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Which companies raised the most significant amounts, and how much did each receive?

Eruditus topped the funding charts with $250 million in growth capital, followed by PhysicsWallah's record-breaking $210 million Series A round in India.

Who were the main investors backing these EdTech startups, and how much did they contribute?

Apis Partners led the largest individual investment with $65 million in Leap's Series E, while established EdTech specialists like Owl Ventures participated across multiple major rounds.

Bain Capital Ventures co-led MagicSchool AI's $15 million Series A alongside Adobe Ventures, marking significant corporate investor participation in AI-focused EdTech. Founders Fund backed Campus's $46 million Series B, bringing its Silicon Valley network and scaling expertise to the live-learning platform. Peak XV Partners (formerly Sequoia Capital India) participated in Leap's Series E, reinforcing its position in cross-border education technology.

Owl Ventures maintained its role as the sector's most active investor, participating in both Leap's Series C through E rounds and Eruditus's growth funding. Range Ventures provided pre-seed funding to MagicSchool AI before its Series A, demonstrating the importance of early-stage specialist investors in AI EdTech. Jungle Ventures contributed to Leap's Series B, establishing its Southeast Asian and Indian market expertise.

Corporate investors played increasingly prominent roles, with HSBC providing $100 million in debt financing to Leap's financial services arm and Microsoft partnering on AI integration pilots. These strategic relationships indicate the sector's maturation toward enterprise-grade solutions rather than consumer-focused applications.

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Which specific startups did these investors back, and what are those startups building or solving?

Investors concentrated on three primary solution categories: AI-powered educational workflows, embedded financial services for education access, and premium live-learning experiences.

Leap addresses the complete study-abroad journey, from standardized test preparation through university admissions to student loan origination. The platform democratizes access to international education by bundling traditionally separate services into one seamless experience. MagicSchool AI tackles teacher burnout through generative AI that automates lesson plan creation, quiz generation, and reading-level adjustments while building AI literacy among students.

Campus reimagines higher education delivery by offering live courses taught by elite university professors with coaching support and transfer credit pathways to major institutions. PhysicsWallah scales affordable, curriculum-aligned exam preparation across India's massive student population. Eruditus partners with top global universities to deliver executive certificate programs that combine academic rigor with practical application.

Zum provides in-home tutoring services with proprietary matching algorithms and personalized instruction methodologies. SpringHealth develops mental health applications specifically designed for educational settings and workforce training environments. These companies represent the sector's evolution from content distribution to comprehensive service delivery platforms.

Are any tech giants or major players in adjacent industries participating in these rounds?

Adobe Ventures co-led MagicSchool AI's Series A, while HSBC provided $100 million in debt financing to Leap's financial services division, indicating significant corporate interest in EdTech infrastructure.

Microsoft and Google for Education maintain strategic partnerships with major AI tutoring platforms, including integration pilots with MagicSchool AI for workflow automation. Amazon Web Services frequently provides credits and technical support to EdTech companies, particularly those winning Temasek Foundation grants and other accelerator programs. These partnerships position tech giants as infrastructure providers rather than direct competitors.

HSBC's substantial debt facility for Leap represents traditional financial institutions recognizing EdTech's embedded finance potential. The bank's ASEAN Growth Fund specifically targets education technology companies that can scale financial inclusion across emerging markets. Adobe's investment in MagicSchool AI aligns with its creative software ecosystem, potentially integrating educational AI tools with existing design and productivity platforms.

Notably absent from direct investment rounds are major social media platforms and traditional media companies, suggesting these incumbents view EdTech as adjacent rather than core to their business models. This creates opportunities for startups to build comprehensive platforms without direct competition from established tech giants.

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What regions or countries saw the most EdTech funding activity during this period?

North America dominated with $4.7 billion in 2024 funding, while India emerged as a major growth market with multiple $100+ million rounds including PhysicsWallah and Eruditus.

Were any standout technologies, product innovations, or R&D breakthroughs a key part of the investments?

Generative AI dominated breakthrough innovations, particularly in automated content creation and personalized learning pathways, while embedded finance emerged as a critical infrastructure component.

MagicSchool AI's generative platform automatically creates custom quizzes, adjusts reading levels, and generates lesson plans based on curriculum standards and student needs. The technology reduces teacher preparation time by 60-80% while maintaining educational quality. Leap's embedded finance innovation integrates income-share agreements and student loan products directly into the study-abroad journey, eliminating traditional barriers to international education access.

Campus developed proprietary live-streaming technology that enables real-time interaction between elite university professors and students globally, with integrated coaching and assessment tools. PhysicsWallah's adaptive learning algorithms personalize exam preparation based on individual student performance patterns and knowledge gaps. Eruditus created partnership technology that seamlessly integrates university curriculum with corporate training needs.

Emerging innovations include AR/VR implementations for vocational training, blockchain-based credential verification systems, and AI-powered mental health monitoring integrated into learning platforms. These technologies represent the sector's shift from content delivery to comprehensive learning experience orchestration.

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What stage were most of these startups in—pre-seed, seed, Series A, or later?

Series A and B rounds captured 35% of total funding, while later-stage rounds (Series C and beyond) increased to 30%, reflecting investor preference for proven business models in a tighter market.

Pre-seed funding declined 15% year-over-year, representing only 10% of total capital deployed in 2024. Seed rounds also decreased 20%, accounting for 25% of funding activity. This shift indicates investors require stronger evidence of product-market fit and revenue traction before committing capital. The average Series A round reached $7.8 million in Q1 2025, substantially higher than historical averages.

Growth-stage and later rounds dominated the largest funding amounts, with companies like Eruditus ($250M growth round) and Zum ($75M Series F) demonstrating the market's appetite for scaled EdTech platforms. These later rounds typically focus on geographic expansion, product line extensions, and acquisition activity rather than core technology development.

Early-stage companies that successfully raised funding demonstrated clear AI differentiation, embedded finance capabilities, or unique partnership access (such as Campus's university faculty relationships). Traditional content-focused EdTech companies struggled to secure funding regardless of stage, indicating fundamental market preference shifts.

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What were the terms or conditions tied to the major funding rounds?

Valuations reflected the market's concentration on proven models, with Leap's Series E implying a post-money valuation exceeding $600 million and MagicSchool AI reaching approximately $150 million post-money.

Campus's Series B round valued the company at roughly $320 million post-money, demonstrating investor confidence in live-learning models with elite university partnerships. Later-stage rounds typically involved 10-15% equity dilution, preserving founder control while providing substantial growth capital. Eruditus's growth round likely involved minimal dilution given its established revenue base and partnership moats.

Debt financing emerged as a significant component, with Leap securing $100 million from HSBC at market rates rather than equity dilution. This approach preserves ownership while funding the capital-intensive student lending business. Income-share agreements and revenue-based financing became more common for companies with predictable cash flows from subscription or course completion models.

Board composition typically includes one investor representative per major round, with specialized EdTech investors like Owl Ventures often securing board seats across multiple portfolio companies. Anti-dilution provisions and liquidation preferences remained standard, though less onerous than during the sector's peak funding period.

Are there any notable trends or themes among the funded startups?

AI-powered personalization dominated funding decisions, with every major round involving companies that use artificial intelligence for content generation, adaptive learning, or workflow automation.

• AI Tutoring and Co-pilots: Platforms like MagicSchool AI that automate teacher workflows and provide personalized learning experiences through generative AI technology.
• Embedded Financial Services: Companies like Leap that integrate lending, payment processing, and financial planning directly into the educational journey.
• Live and Interactive Learning: Premium platforms like Campus that combine elite faculty with real-time interaction and coaching support.
• Workforce and Upskilling Focus: Solutions targeting adult learners and corporate training rather than traditional K-12 or higher education markets.
• Cross-border and Mobility: Platforms addressing international education access, credential recognition, and student mobility services.

Gamification and engagement technologies received less funding attention compared to previous years, indicating investor skepticism about user acquisition costs and retention rates. Mental health integration became a standard feature rather than a differentiation point, with companies like SpringHealth leading specialized solutions for educational settings.

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What are realistic expectations for EdTech funding activity in 2026 based on current momentum and pipeline?

Total funding should rebound to $7-8 billion globally in 2026, driven by larger average checks, increased corporate participation, and AI-powered platform consolidation.

Mega-rounds exceeding $100 million will become more common, particularly for AI tutoring platforms and workforce education companies with proven enterprise sales models. Corporate investors like Microsoft, Google, and Adobe will likely increase direct investments and strategic partnerships rather than relying solely on integration relationships. The average deal size should continue growing as investors concentrate capital in fewer, more scalable companies.

Platform consolidation will accelerate, with successful companies acquiring niche AI, AR/VR, and specialized content providers to build comprehensive educational ecosystems. Public-private partnerships will expand significantly, especially in workforce development and reskilling initiatives funded by government digitization programs. MENA and Southeast Asian markets will capture increasing investor attention as government education modernization creates scalable opportunities.

Early-stage funding will remain challenging for pure content companies, while those combining AI, embedded finance, or unique partnership access will continue attracting seed and Series A investment. The sector's maturation toward enterprise-grade solutions will drive longer sales cycles but higher average contract values and improved unit economics.

Conclusion

Sources

1. Brighteye Ventures - European EdTech Funding Report 2025
2. Holon IQ - EdTech VC Investment 2024
3. Business Wire - MagicSchool AI Funding Announcement
4. Holon IQ - EdTech Funding Early 2025
5. Lucidity Insights - MENA EdTech Funding Growth Q1 2025
6. Apis Partners - Leap Investment Announcement
7. FinSMEs - Campus Series B Funding
8. Reach Capital - US EdTech Rebound 2025