• ClassDojo, a communication app and website that connects teachers, students, and families, announced that it raised USD 125 million in a Series D funding round last fall led by Tencent, valuing the company at USD 1.25 billion.

• The company reported that it used the funds to build a virtual world for the development of creative, collaborative, and sportsmanship skills for K-12 students. It launched the solution out of beta with the intent to make it available to ~51 million active students in ClassDojo classrooms from next month. 

• Unconfirmed reports revealed that ClassDojo’s annualized revenue is estimated at more than USD 30 million.    

Analyst QuickTake: ClassDojo is pivoting to a digital “metaverse” from its classroom-based solution of student-parent, and teacher engagement. The firm will be directly competing with well-capitalized public companies such as Facebook and gaming solution provider Roblox. However, ClassDojo believes that it has a competitive advantage, with claims that 95% of US schools are utilizing its platform and that the fundraiser has provided 5+ years of resources for further product development.