Pearson invests in online higher education startup from Indonesia

Pearson, the education company, has invested via the Pearson Affordable Learning Fund (PALF) in HarukaEdu, a Jakarta-based startup that provides technology solutions to enable institutions of higher education to offer degrees online. This marks PALF’s 11th investment in entrepreneurs who are improving education outcomes for low- income learners in the developing world, and its first investment into the online higher education space.

Through this deal, HarukaEdu raises US$2.2 million of funding led by PALF and Samator Education, alongside Cyber Agent Ventures. The funding will enable HarukaEdu to develop its partnerships with top higher-education institutions in Indonesia. It has currently signed with six institutions and is launching a new version of its integrated technology platform to help drive future growth, and aims to double the number of partnerships in 2017.

In a typical partnership, HarukaEdu develops content with the university, delivers video-based lectures using their Learning Management System, and measures student outcomes. “We are excited to invest in HarukaEdu and work with them to help low- and middle- income learners in Indonesia improve their employability prospects and income potential,” says TT Nguyen Duc, PALF Southeast Asia Investment Director.

HarukaEdu also plays a role in increasing incomes and reducing unemployment in Indonesia as college graduates typically earn three times more than high school graduates earn in 10 years and the unemployment rate among college graduates is 50% less than high school graduates.

“HarukaEdu has a rigorous pedagogical approach and a commitment to make high quality education accessible, two attributes that are critical to sustainable education companies. With this foundation, we believe they can provide millions of learners with greater upward mobility and drive up domestic and regional competitiveness of the Indonesian workforce.”

Novistiar Rustandi, CEO, HarukaEdu, said: “Our vision is to become a world class provider of higher ed technologies that support the delivery of quality, affordable, accessible, and sociable online learning. Through our platform, people can continuously acquire new skills and knowledge to stay relevant in this changing world. PALF shares the same vision and mission with HarukaEdu and has displayed a very strong commitment to helping us in realising them. We believe PALF is the right, long-term partner for us in improving education in Indonesia.”

The online higher education market in Indonesia is fast-growing and currently valued at US$6.5 billion according to the Indonesia Census Bureau and an internal survey of demand for online higher education. HarukaEdu is uniquely positioned to grow and expects to reach 2,500 enrolments in 2017.  
PALF has been active in Southeast Asia for several years, starting with its early investment in APEC Schools in the Philippines. Katelyn Donnelly, MD of the PALF said: “Indonesia is a large, dynamic market and high quality university education is paramount to ensuring the livelihood and success of the growing population. HarukaEdu is our first investment in online program management and we are excited about the potential to make learning more flexible and accessible to students in Indonesia.”