Shark Tank India 4: This education startup tells Ritesh Agarwal they are 'OYO of schools,' bags three sharks deal

Shark Tank India 4: Some startups prioritise impact over profits, and Cograd is a prime example. Featured in the fourth season of Shark Tank India, this Uttar Pradesh-based education startup is working to improve rural schooling. Founded in 2021 by Saurabh Yadav from Etawah and Himanshu Chaurasia from Farrukhabad, Cograd aims to bridge critical gaps in village education.

Despite nearly 140 million children studying in rural India, many schools suffer from a lack of qualified teachers, modern teaching methods, and internet access. The situation worsened during the pandemic, leading to widespread school closures between 2020 and 2021. Cograd saw an opportunity in these abandoned institutions. By leasing non-operational schools, refurbishing them, and transforming them into well-equipped learning centres, the startup offers quality education at an affordable fee of Rs 500 per student. Currently, Cograd runs five schools and supports ten others, collectively educating around 8,000 children.

‘Couldn't refuse wealth that came your way?’

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However, the founders faced tough questions from the sharks during their pitch. OYO founder Ritesh Agarwal asked whether their school business was running at a loss, as it seemed they were prioritising other ventures. The founders admitted to exploring additional opportunities but assured they intended to resume expansion.

Titan Capital co-founder Kunal Bahl, however, took a dig at them, quipping, "Isiliye toh nahi ke ghar aayi Lakshmi ko mana nahi kar paa rahe?" (Is it because you couldn't refuse the wealth that came your way?). Anupam Mittal pointed out that with their ambitious goal of opening 1,000 schools, they should have focused more on scaling up. When Kunal pressed them on how many schools they had opened this year, they conceded that they had not added any. This led to a debate among the sharks over whether the startup lacked clarity in its mission.

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Technology-driven teaching with Medha AI

To streamline teaching, Cograd has developed Medha AI, an educational tool that helps teachers create lesson plans and assignments efficiently, allowing them to focus on delivering quality education. The founders emphasised that their commitment to education stems from their personal journeys and their desire to give back to the communities that shaped them.

‘We are OYO of schools’

Cograd leverages its extensive Jawahar Navodaya alumni network of 14 lakh individuals to recruit teachers as needed. When Ritesh Agarwal compared their model to OYO’s strategy of upgrading small hotels, the founders responded, "We are the OYO of schools."

The startup aims to scale its model to 1,000 schools over the next decade while integrating Medha AI into 25 per cent of institutions. A portion of its revenue comes from providing technical training to students and educators.

Strong growth, ambitious targets

Cograd’s earnings have grown from Rs 27 lakh in 2021-22 to Rs 1.92 crore last year. In the first half of this financial year, revenue has reached Rs 1.67 crore, with a target of Rs 10 crore by year-end. The founders explained that many schools struggle to sustain operations beyond three to four years. However, Cograd found a solution in reviving these institutions, achieving financial sustainability once enrolment reaches 300 students per school.

A significant aspect of Cograd’s mission is empowering young girls—60 per cent of its students are female. This statistic left shark Vineeta Singh astonished. The startup’s impact also moved Ritesh Agarwal, who remarked, "I have goosebumps hearing your story."

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Did they get a deal?

Seeking Rs 1 crore for 2 per cent equity, the founders pitched to the sharks. While Anupam Mittal and Kunal Shah opted out, Vineeta Singh offered Rs 50 lakh for 10 per cent equity, with the remainder as a loan. Meanwhile, Ritesh Agarwal and Namita Thapar proposed Rs 50 lakh for 5 per cent equity, plus Rs 50 lakh as a loan at 9 per cent interest.

In the end, the three sharks finalised a deal at Rs 50 lakh for 6 per cent equity, with the rest as a loan at 9 per cent interest for three years.