Indian education technology platform, Udayy has raised US$2.5 million in a seed funding round which was led by Alpha Wave Incubation – a funding venture managed by Falcon Edge Capital and InfoEdge Ventures.

The round was joined by Better Capital, Kunal Shah (founder of Indian fintech Cred) and other angel investors.

Udayy is the provider of a platform that teaches mathematics and English to children aged from six to 11 years old through an interactive classroom, comprising of three to five children.

Udayy conducts 400 classrooms daily and has recently launched a free application for offering daily worksheets.

Udayy will utilize the funding capital for curriculum development and product suite expansion and it’s also eyeing recruitment across the product, curriculum and engineering teams.

Saumya Yadav, the CEO of Udayy, said, “Primary grades are formative years of education for children. An outdated education system is failing Indian parents and children.”

The startup claims that its business model has paved way for high contribution margins and a retention rate of more than 97 percent.

Anirudh Singh, the managing director of Alpha Wave Incubation, said, “After-school education in the younger age group segment is an untapped market in India.”

Anirudh added that Udayy is on the verge of disrupting the space through its experiential learning model, which utilizes tech-powered gamification as a key driver of learning outcomes.

The edtech industry in India is witnessing an increase in funding with a total of US $2.22 billion in investments in 2020 (from reports of the Indian Private Equity and Venture Capital Association and PGA lab). Another estimation presented by the research firm, KPMG, states that there are at least 3500 edtech startups in the country today.