RedShelf is heading back to school with a new $4 million round in its backpack.
The Chicago edtech company partners with over 500 college and university bookstores to offer digital versions of textbooks from over 600 publishers to students at a discount. The books are delivered through the company’s proprietary cloud e-reader.
The $4 million Series B, announced Thursday, was led by Coniston Capital’s Rick Patterson, who will be joining the company’s board of directors as part of the deal. Existing investors, including the National Association of College Stores, also participated in the round.
RedShelf will use the funding to develop new products and improve on its existing e-reader software. The company plans to bring on 14 new full-time staff members to support that effort.
“RedShelf's continued growth proves they have a firm understanding of the needs of both the higher education and publishing communities,” said incoming board member Rick Patterson in a statement. “I'm excited about RedShelf because they've been able to penetrate the higher ed market with a unique business model that is making digital course materials for college students more affordable, accessible, and easy to use. The company is bringing elite educational software to the learning community and bridging the gaps between the central players in the industry.”
Since launching its service in 2012, the Chicago edtech company has seen 400 percent year-over-year growth. It also raised a $2 million Series A at the beginning of last year.
“There is no way that 10 years from now backpacks will be filled with paper textbooks,” said CEO and co-founder Greg Fenton at the time of that round. “Students expect great software in education just like they do with social media, online shopping, or game applications. Ultimately, this gives students more convenient options when purchasing learning materials.”
The company’s total funding to date is $7 million.
Image via RedShelf.