Chegg Founder’s New Startup Raises $7.5 Million


Osman Rashid, who co-founded online textbook rental firm Chegg, has raised $7.5 million more for his new stealth electronic books startup Kakai; we reported in August that the startup had raised $1.1 million. The new money comes from a roster of big name investors, including Andreessen Horowitz, Josh Kopelman of First Round Capital and serial angel investor Ron Conway.

Still no details on what exactly Kakai will sell — or rent. Over the summer, we had reported, based on trademark filings, that Kakai was possibly developing a new e-reader, although Rashid told us then that the company was “really more of a test bed to try out apps for devices like iPhone, Pre and G1/G2” and “that is where the device bit in (the trademark filings) is coming from.”

Rashid is CEO, while co-founder Babur Habib — who was previously a manager at engineering and scientific consulting firm Exponent — is CTO.

Rashid has also been serving as the interim CEO at Chegg since September, when Jim Safka stepped down from that post after only four months on the job.

TechCrunch first reported the funding; we confirmed it with Rashid.

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