Chegg Raises An Ungodly $112 Million For Online Textbook Rental Service

Chegg

Looks like VCs are really loosening their wallets. College textbook rental service Chegg says it has raised $57 million in a fourth round of funding. It’s the latest company to pull in a big round this month; RockYou, Motley Fool, and Playdom have each raised $25 million-plus rounds over the last several weeks. Chegg’s round was led by Insight Venture Partners. Besides the venture round, it has also received a $25 million “credit facility,” along with a $30 million “debt facility” from Insight, Pinnacle Ventures and TriplePoint Capital, bringing the total money raised to $112 million. Chegg says it will use all the new cash to double the size of its workforce and expand the number of colleges it serves.

The company’s service lets college students rent textbooks, so they don’t have to buy them. The startup hired former Ask.com CEO Jim Safka as CEO in June, although he stepped down in September. Since then, founder Osman Rashid has once again taken over.

The company last raised money a year ago, when it got $25 million in a third round. With this funding, it will have now raised more than $84 million in venture funding, and $55 million in credit and debt facility, since being started four years ago.

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