Toddle Targets $50-100M in One of India's Biggest Edtech Rounds Since Downturn

The company's financial performance has improved sharply. Revenue from operations rose nearly 60% year-on-year to ₹114.4 crore in FY25 from ₹71.4 crore in FY24, according to financial data reviewed by Mint. Losses narrowed to ₹42.2 crore from ₹61.4 crore a year earlier.

“It has seen a tough period being at the intersection of SaaS and edtech, both of which saw negative sentiment for a while. Its ARR and profitability metrics have improved significantly,” this first person said. “While it's early stages in the fundraise, the company is betting on a near-breakeven status and annual recurring revenue (ARR) of around $25 million,” a second person added.

The fundraising reflects a broader shift in investor preferences. Money is flowing toward software providers serving schools rather than direct-to-consumer edtech businesses. Investors are betting that growing private equity investment in school chains will drive spending on digital curriculum, assessment and parent-engagement tools.

Toddle was last valued at about $136 million after raising $17 million in a Series A round in January 2023. The round was led by Peak XV Partners, then known as Sequoia Capital India. Trifecta Capital, Matrix Partners India, Better Capital, Beenext and Tenacity Ventures also participated. In January 2023, venture capital firm 3one4 Capital exited its early investment in Toddle, generating a 6.6x return on its seed investment, according to reports.

India's edtech sector raised $178 million in the first half of 2026, exceeding the $155 million raised during all of 2025, according to Tracxn data as reported by Mint earlier this month. Investors remain selective, favouring B2B school software platforms with recurring subscription revenue and a clear path to profitability over consumer-focused models that dominated the previous cycle.