Image: Frrepik / Letrus
Letrus, a Brazilian edtech startup, has successfully closed a funding round of USD$7.3 million, showcasing its growth and potential in the educational sector. Begun in August 2022, this capital raise marks a significant step for the company and the educational technology field in Latin America.
The round was led by Crescera Capital, a Brazilian fund with a history of investing in prominent educational projects like Ánima and Alura/FIAP. It also saw participation from Owl Ventures, a US-based firm specializing in the educational sector, demonstrating international interest and confidence in Letrus’ business model.
This investment process attracted not only high-profile investors but also entities such as Altitude Ventures from Península, the family office of Abilio Diniz; education-focused foundations like Lemann and VélezReyez+; BID Labs, the innovation arm of the Inter-American Development Bank; as well as angel investors.
The Letrus Method
Founded in Sao Paulo, Letrus has developed a revolutionary platform powered by artificial intelligence to enhance students’ reading and writing skills in both public and private schools. This program, integrated into classrooms and linked with pedagogical activities, offers instant feedback, recommendations, and suggestions as students complete exercises. Concurrently, teachers gain a clear insight into their students’ progress and the overall evolution of the classes.
The Letrus platform, awarded by UNESCO, uses artificial intelligence to assess, correct, and suggest improvements in students’ texts, marking a significant change in how teaching and learning are approached in classrooms.
Currently, Letrus serves 680 schools, with 80% of its revenue from private and 20% from public networks. This latter percentage is highlighted by a collaboration with the government of Espírito Santo, with which the startup established a contract last year.
The company aims to consolidate its current presence and plan a significant expansion in 2024. It is currently negotiating with several private educational groups and at least three state governments, forecasting exponential growth and an even more substantial impact in Brazil’s educational sector and potentially across Latin America.
According to a 2022 survey by Statista, edtech startups in Latin America primarily focused their services on professionals looking to improve or acquire skills. That year, approximately half of the high-level executives surveyed indicated that their companies were oriented towards this segment. A little over 40% of these companies in the region offered solutions aimed at private schools, while 30% focused on meeting the needs of public schools.
Furthermore, according to Statista’s own data, the global edtech market is expected to grow at a compounded annual rate of 19.9%, reaching USD$377,850 million in 2028, in a segment that will continue to evolve and become increasingly significant in the educational landscape.
