Satchel has expansion in the bag

BRITISH education technology group Satchel, whose Show My Homework tool is used in a third of state secondary schools, is looking to raise at least £3million from investors.

Founder and chief executive Naimish Gohil, a former teacher, said that it is aiming to raise the money from venture capital groups by late February or early March. The proceeds will be used to develop new products and step up its international expansion.

Satchel was founded six years ago and its flagship Show My Homework product is used in 23 countries, but it has prioritised the UK. The overseas growth it has experienced has come from word of mouth and ex-pat teachers taking its software with them, rather than a specific, organised growth plan.

However Gohil said that it is set to change, as it is actively targeting the US as its next major market. He said: “We already have US clients, but this will allow us to increase spending on marketing and engagements out there to build the business. Some of the proceeds of the fundraising will be used to hire people. The second use will be to invest in products and technology.”

Satchel is close to break even and last year had revenues of £3million.

Elsewhere Zen Educate, the “Uber of supply teachers” service, is looking to expand outside London and internationally, according to founder Slava Kremerman. He said that it is targeting schools in Manchester and that if it is successful, it will expand nationally.

Zen’s website and smartphone app links supply teachers with schools and is used by 150 schools around London.

Although it plans to expand overseas and into sectors such as healthcare, Kremerman said: “We want to make sure that the playbook is robust so that we can survive outside of London.”

The low-cost service claims to be able to save schools thousands of pounds compared to traditional agencies. Before setting up Zen Educate Kremerman was part of the leadership team at Nutmeg, the computer-driven investment advice provider.