Gray Matters Capital invests in education firm Chrysalis

Chennai-based EZ Vidya Pvt. Ltd, an education services provider that operates under the Chrysalis brand, has raised an undisclosed amount of pre-series A funding from impact investor Gray Matters Capital.

The company will use the funds to build on its research capabilities and to strengthen its multi-channel approach, it said in a statement. It will also use the funding to foray into the segment of affordable private schools.

Founded in 2001 by Chitra Ravi, Chrysalis provides academic and learning assessment solutions to schools and children. Its flagship product is ThinkRoom, an academic programme developed in-house. Last year, Chrysalis introduced Buzzle Cards, which helps impart core concepts of mathematics and English using augmented reality through an app. The app animates images on the cards, making the learning experience immersive for the student.

Chrysalis claims it has a presence in 11 states, 500-plus schools and among 250,000 students.

Atlanta, US-based Gray Matters invests in companies that aim for underserved populations in developing countries. Its investments span across sectors like microfinance, information technology, healthcare, energy and education. In 2007, it turned its focus to education for underserved children in developing countries, especially India.

Boutique investment banking firm Unitus Capital acted as an exclusive financial adviser to Chrysalis, while impact investment management firm CBA Capital supported Gray Matters Capital in this transaction.

Investing in education
A number of ed-tech and digital learning companies have attracted investors’ attention in recent years.

Just last week, Bengaluru-based AEON Learning Pvt. Ltd raised $3.2 million (Rs 20.43 crore) in a Series B round from MEMG Family Office LLP.

Earlier this month, Pune-based ed-tech startup Rubix108 Technologies Pvt. Ltd secured $1 million in a pre-Series A round led by Polaris Fund. Also this month, Bengaluru-headquartered Butterfly Innovations Pvt. Ltd, the operator of ed-tech startup CollPoll, raised its pre-Series A round.

In December 2017, Bengaluru-based online ed-tech platform Springboard raised $9.5 million in a Series A funding round.

Gray Matters invested in e-learning firm Liqvid eLearning Services Pvt. Ltd’s English language unit in September 2016.