What the business is
Classplus began as the 'Shopify of edtech': subscription software (₹13,000–50,000 plus 15% of course fees) letting tutors run classes, sell courses and manage students online.
Starting capital
More than $200M raised; Testbook's controlling stake bought for ₹67.8 Cr in a September 2022 secondary transaction from Matrix Partners and Pivot Ventures.
How it started
Founded by Mukul Rustagi and Bhaswat Agarwal, Classplus boomed in the pandemic as tutoring went online — yet booked just ₹26 Cr revenue against ₹164 Cr losses in FY22 despite the $600M valuation.
What happened
Testbook's revenue reached ₹137 Cr in FY24 — nearly double Classplus's ₹73.9 Cr — and made up 64% of consolidated ₹213 Cr, consolidated since FY23. Two other acquisitions turned hostile: Saarthi's cofounder and investors sued in August 2023, and Abhinay Maths' founder filed an FIR in March 2024 alleging cheating, forgery and copyright infringement — claims Classplus denies. Diversification followed: Polaris School of Technology, an offline BTech college in Bengaluru opened in 2024, and a ₹50 Cr investment (with Pravega Ventures) in education-loan fintech GyanDhan.
What has to be true
The SaaS value proposition collapsed once free substitutes — WhatsApp, YouTube — sufficed when classes went back offline.
Testbook cost a fraction of Classplus's fundraising yet doubled its revenue within two years.
Government-job exam prep is annual, recurring and deep in tier II markets — demand the tutor-SaaS model never captured.
What can be applied
When your core bet stalls, an acquired 'dark horse' can quietly become the company — the risk is an identity crisis, not a write-down.
Aftermath
As of July 2025, Classplus consolidates Testbook's financials, runs an offline BTech college in Bengaluru, and holds a stake in GyanDhan, while VC observers warn of an identity crisis: everything in edtech at once.
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