Edtech startup Stones2Milestones has raised $2.5 million in a bridge funding round. The round was led by US-based Unreasonable Capital and its LP Goldhirsh Foundation. A leading investment banker from Singapore, along with a few lawyers, led the angel investment share in this round along with three angel platforms AngelList US syndicate, LetsVenture and FaaD Network.
The funding will be used for the company’s Freadom app that helps children between 3 and 12 years of age to improve their English reading, speaking and conversation skills.
“We are now scaling our solution fast to reach 10 million within the next 12-18 months. With a product that’s working for 200,000 plus users, a profitable business model and a mission-aligned passionate leadership team, this round of capital is well-timed for fueling growth,” said Kavish Gadia, co-founder and CEO, Stones2Milestones.
This funding will also be used to further strengthen investments in technology innovation, AI/ML and product, added Gadia.
Of the 320 million schoolgoing children in India, an estimated 9 out of 10 children read below-grade levels, thus making this an imperative problem to solve.
The company claims an annualized revenue rate (ARR) of $1.5 million and expects ARR to cross $7.5 million by March 2021. Based on the last 6 months of 100% month-on-month revenue growth, Freadom is on track to hit this target without even a Series A close. The Company has initiated its next raise of $5-8 million and two of the current investors have confirmed participating in this round as well, added Gadia.
Currently, Freadom is the only vertically integrated stack for learning English as a second language and the company will continue to invest in tech-first strategies to further disrupt this space.
