IPO Watch: Online tutoring service Cluey becomes the latest ASX edtech stock

The ASX welcomed another new edtech company in online K-12 tutoring company Cluey (ASX:CLU).

The company has 620 tutors that have held more than 192,000 sessions, both one on one and small group sessions, since its launch in July 2018.

It also tracks datapoints during each session to improve the learning experience for students and parents.

It is exclusively operating in Australia for now but is eyeing overseas markets, beginning with the UK, eventually.

Cluey raised $30 million at $1.20 per share. At market open, shares opened slightly upward by 6 per cent to $1.27.

Cluey (ASX:CLU) share price chart

Cluey’s momentum continuing in FY21

Cluey CEO Mark Rohald hailed the listing as a big day for his company.

“Our listing is a significant milestone for our company. We’re excited about delivering our next phase of growth and we welcome our new investors on this journey,” he said.

Rohald also noted strong momentum had continued into the new financial year with 52,700 sessions delivered last quarter. This is 338 per cent more than the prior corresponding period and even up 41 per cent from the immediate proceeding quarter.

In October and November there were 38,000 sessions, a 261 per cent increase compared to the same period last year.

The company hopes to capitalise on the growing demand for tutoring and education support resources beyond the classroom.

“The global education technology market is expected to grow at a 16 per cent compound annual growth rate between 2019 and 2025 – growth of 2.5 times,” said chairman Robert Gavshon.

“Coupled with Cluey’s integrated technology and data platforms, proprietary content and scalable business model, this presents an attractive opportunity for Cluey as a leading supplier of technology-enabled educational outcomes for students.”