The company will use the funds to introduce new categories in the test prep segment such as study abroad programmes, tutoring courses, career counselling programmes, and finance and commerce test preps.
The startup is also looking at hiring around 160 teaching and non-teaching staff in the next 12 months.
Founded in 2016 by Gaurav Goel, Karan Mehta, and Harsh Gagrani, Toprankers offer courses in the test prep segment focusing on law, judiciary services and state exams, management test prep exams like Central Universities Common Entrance Test (CUET), and design, fashion, and architecture entrance tests such as the National Aptitude Test in Architecture (NATA).
It offers these courses under different brands such as LegalEdge, JudiciaryGold, SuperGrads and CreativeEdge.
“Our focus is to be a full-stack career company. We are trying to help students answer the what and how to study. NEET (National Eligibility cum Entrance Test) and JEE (Joint Entrance Exam) are not the only career options and throughout the platform, we prove that there are a lot of successful careers,” Goel told ET.
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The funds will also be used to set up around 25 offline centres including one in Kota, Rajasthan, and in Madhya Pradesh, Delhi and Uttar Pradesh. The startup presently has around 10 offline centres under its brand Toprankers Hybrid.
“We started something called toprankers hybrid six months back and we are seeing a lot of traction from it. Setting up offline centre costs anywhere from Rs 50-60 lakh,” Goel added.
Edtech platforms including PhysicsWallah, Cuemath, Vedantu, Unacademy and Byju’s are also in the process of either expanding or building an offline presence.
Toprankers is also looking to make acquisitions in the study abroad and career counselling segments.
“We are in active discussions with two offline institutes. We are looking at acquisitions in career counselling and discovery, finance and study abroad categories. Our first acquisition will take place in the next 12 months,” Goel added.
Toprankers claims to have helped over two lakh students start their careers and aims to build careers for 10 lakh students over the next three years.
“CUET will potentially create a huge test-prep vertical. Being one of the first movers with an active product enables Toprankers to capitalise on this opportunity”, said Nimisha Nagarsekar, investment partner, Sixth Sense Ventures.
Toprankers has an annualised revenue run rate of $3 million and is planning to double this in the next 12 months. Goel added that the company has already turned profitable.