Magic Crate, a Bangalore-based activity-based ed tech platform run by Funfinity Learning Solutions Pvt. Ltd has secured an undisclosed amount in their pre-Series A round. The funding was led by early-stage consumer-focused firm Fireside Ventures with existing investor 3One4 Capital also participating in the funding round.
FireSide Venture's Kannan Sitaram will be joining the board of Magic Crate post the investment as part of the deal. The platform was founded by Viswanathan Ramakrishnan. an IIT-IIM alumnus along with ex-McKinsey consultant Karthik Lakshman in 2015. The firm provides learning kits for children in primary schools on a subscription basis. The kits which the company calls crate aim to fulfill the educational needs of the students. The kits are aimed for the kids aged 1.5-13 years, made by a team of early childhood experts and product designers whose main focus is to provide something which helps the kids in education, at the same time it is entertaining as well.
Ramakrishnan, the co-founder and the CEO of the Magic Crate talking about how the company is helping the parents said, “Research shows that about 80% of critical brain development happens before the child turns 8. This has a direct correlation with what they are exposed to, during those years. Also, in this age group, they have a phenomenal amount of free time and it becomes a big challenge to engage them at home. Magic Crate is solving this pain point for millions of busy, but well intentioned parents.”
Kannan Sitaram, Venture Partner, Fireside Ventures commenting on their investment said that “Magic Crate is going after a huge white space. During the early years, the child spends more time at home than at school, and yet there are no large consumer brands catering to millennial parents looking to engage their children productively at home. The team has built a solid product line and business model that’s allowing them to scale in a very capital efficient way.”
Magic Crate's second co-founder and COO commenting on the profitability of the firm said that "The startup has been unit profitable for over a year thanks to our strong repeat rates and 50%+ gross margins. With this business vertical scaling well with strong unit economics, we are now working on launching exciting new products to our customer base and this funding round helps accelerate our efforts.”