Heritas Capital leads US$3m Series A+ round in Indonesian edtech firm Cakap
Cakap, the leading online language learning platform in Indonesia, today announced its successful US$3 million Series A+ raise. The round was led by Heritas Capital with participation from Strategic Year Holdings and other prominent Investors. Existing investors including Investidea Ventures and Prasetia Dwidharma also followed-on in the round. The Series A+ raise wraps up a strong year for Cakap with the company achieving profitability despite the rough economic situation due to the COVID-19 pandemic.
Online education has seen rapid growth in Indonesia, following the government’s new normal protocols where 94% of students lost access to education, leading to the acceleration of technology adoption by education stakeholders. Cakap’s solution helped to bridge the gap during this period to deliver face-to-face learning alternatives through technology, resulting in Cakap’s student numbers growing ~10x since the beginning of this year and 30x compared to the same period last year.
“The key to our success during this pandemic is in our deep understanding of the Indonesian education landscape. Our solution solves the problem of the lack of access to high quality education, not only for students in the big cities, but also for the whole archipelago of Indonesia, including 3rd tier cities and remote areas. We are excited to be part of the digital learning transformation in Indonesia, and helping to democratise access to high quality education and elevating people’s lives in the long run.” said Tomy Yunus, Cakap co-founder and CEO.
Indonesia has one of the largest education systems in the world with over 3 million teachers across 300,000 schools. Edtech funding in Indonesia has also been steadily gaining momentum, with funding tripling in 2019, and edtech tool adoption witnessing record growth in Southeast Asia.
“Cakap has created a unique and relevant solution for the Indonesian market and there is no better time to scale with many Indonesians and students becoming more internet savvy day by day. The company offers a compelling impact proposition through providing access to affordable quality education and we look forward to working closely with the team to support the company in its journey to scale education solutions throughout Indonesia,” said Charis Goh, Director at Heritas Capital.
Rated 4.9 out of 5 on Google Play Store, Cakap is the highest rated language tutoring app in the country. The company intends to use the Series A+ funding to recruit more brilliant minds to the company, advance technology development, and for business expansion across Indonesia and the region following their expansion into the K-12 and vocational up-skilling markets.