Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals
Chegg.com's distinctive customer value proposition and large market opportunity recognized by new investors
SANTA CLARA, Calif., Nov. 19 /PRNewswire/ -- Chegg.com, the No. 1 online textbook rental company, announced today that it has successfully closed $57 million Series D equity funding, led by Insight Venture Partners. In addition, Insight Venture Partners also led a syndicate that has provided a $25 million credit facility, adding to the $30 million in debt facility recently secured from Pinnacle Ventures and TriplePoint Capital. With this capital, Chegg.com plans to service the company's extraordinary growth, enhance its commitment to best-in-class customer service and further build partnerships with publishers, wholesalers and colleges. As part of the funding event, Deven Parekh from Insight Venture Partners joins Chegg.com's Board of Directors.
Using capital previously provided by Kleiner Perkins Caufield & Byers, Gabriel Venture Partners, Primera Capital and Foundation Capital, Chegg.com has helped hundreds of thousands of students at more than 6,400 colleges save in excess of $65 million with its Netflix-like textbook rental model. The company expects to double its workforce and to continue expanding its customer base and the number of colleges it serves.
"We are thrilled with the continued excitement from leading investors who understand the tremendous value we provide to students around the country," Chegg.com Chief Executive Officer and Co-Founder Osman Rashid said. "This new funding is a significant step up from Series C and a testament to the growing market opportunity for Chegg.com's textbook rental offering. With college tuitions continuing to climb and higher unemployment rates, parents and students are looking for any and all ways to cut costs."
"Chegg.com exemplifies the type of company we look to invest in; a company that provides meaningful customer value, has a strong and growing customer base and, most importantly, an idea and an innovative spirit that drives business objectives," said Deven Parekh, managing director of Insight Venture Partners, which has also invested in Twitter and SolarWinds among others. "We are big believers in the market potential for online textbook rentals and are excited about the high-growth trajectory of Chegg.com. Insight's infusion of new financing will enable Chegg.com to execute on its aggressive growth plans."
Chegg.com allows college students to rent textbooks online and save a significant amount off their textbook bills. In addition to saving money, students support the environment when they use Chegg.com; the company plants a tree for every textbook rented, bought or sold. To date, Chegg.com has successfully planted close to 1.5 million trees around the world.
"The aggressive growth Chegg.com has experienced is not only because we provide students significant savings on their textbooks -- on average $500 per year -- but our dedication to unparalleled customer service." Chegg.com Senior Vice President of Operations and Co-Founder Aayush Phumbhra said. "Some of the additional funding will be used to further enhance our commitment to best-in-class customer service and build more partnerships with publishers, wholesalers and colleges."
About Insight Venture Partners
Founded in 1995, Insight Venture Partners is a leading private equity and venture capital firm focused on the global software, internet and data services industries. Insight's team is composed of experienced investors and operating executives with more than 150 years of collective experience in these industries, and a capital base of $3 billion to support the companies in which they invest. The company is headquartered in New York City.
About Pinnacle Ventures
Pinnacle Ventures is a private venture capital fund focused on providing debt and equity financing to early-stage companies across information technology, cleantech and healthcare. Pinnacle differentiates itself through the strength and diversity of its team, its creative and flexible financing alternatives and its unique approach to helping its portfolio companies achieve success.
About TriplePoint Capital
TriplePoint Capital is the leading global specialty finance company devoted to serving high-growth private equity and venture capital backed companies throughout their lifespan with debt financing, equity capital, and complementary services. With unparalleled levels of creativity, flexibility and customer service, TriplePoint Capital has been the primary debt-financing provider to YouTube, Facebook, Adify, Coskata, Facebook, Ilypsa, Suniva, Proteolix and numerous other high profile technology, cleantech, and life sciences companies. TriplePoint Capital is uniquely qualified as the only provider equipped to meet the needs of high-growth companies at every stage of their development. Headquartered on Sand Hill Road in Menlo Park, California, TriplePoint Capital partners with high-growth companies around the world.
Chegg.com's transformative concept of money-saving, online rental access to textbooks has made it one of the Internet's fastest growing companies and the number one online textbook rental company. Launched nationally in 2007, to-date, Chegg.com has saved students more than $65 million off the cost of textbooks at more than 6,400 colleges. With a growing inventory of more than 2.4 million titles, Chegg.com puts textbooks into the hands of students when they need them arriving in the brand's iconic orange box. For every book rented, Chegg.com plants a tree through American Forests' Global ReLeaf Program. To date, Chegg.com has planted more than 3,000 acres of forests.
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