Chegg.com receives a $25 million investment

PRESS RELEASE - Chegg.com receives a $25 million investment

Chegg.com, the number one textbook rental company, today announced that it has received $25 million in Series C funding from Kleiner Perkins Caufield & Byers (KPCB), Foundation Capital and existing investors Gabriel Venture Partners and Primera Capital. The additional financing is part of an aggressive growth strategy for building the textbook rental market and Chegg.com’s position as the number one brand. The financing will be used to grow the site to provide superior service to students, increase the textbook rental catalog and expand leadership in the textbook rental market.

“Chegg.com is executing its strategy to save students millions of dollars a year with online textbook rentals,” said Osman Rashid, CEO and co-founder of Chegg.com. “With this funding Chegg.com will be able to reach even more students, with more books and more money saving services. We are proud to welcome KPCB and Foundation Capital to our team.”

Chegg.com allows college students to rent as many textbooks as they like with just a few clicks, delivering them straight to students’ doors. By renting textbooks through Chegg.com, students can save up to 80 percent or $650 per semester on their textbook bills. The online option also eliminates time spent waiting in lines at the bookstores. Students also have the ability to buy, not just rent, textbooks over Chegg.com and know at the time of purchase the exact amount of cash they will receive at the end of the semester if they so choose to sell the book back to Chegg.com.

Chegg.com has helped students save millions of dollars on textbooks and in July, Chegg.com celebrated its first anniversary of the textbook rental company. In addition to helping students save money each school year, Chegg.com also keeps the environment top of mind by planting a tree for every textbook rented. Chegg.com has successfully planted 150 plus city blocks of trees and is expecting to significantly increase that number during the next planting seasons.

“We believe there is strong potential for growth and success for the textbook rental market as parents and students look for new ways to save on the costs of a higher education,” said Ted Schlein at KPCB. “We look forward to working with Chegg.com to drive forward the company’s leadership in the market.

“As an original venture investor in Chegg.com, Gabriel Venture Partners realized early on that the company had a disruptive, forward-thinking business model that would propel it to market leadership,” said Rick Bolander, managing partner at Gabriel Venture Partners. “The capital-efficient and disruptive nature of Chegg.com’s model has already translated into impressive revenue growth, and we look forward to continuing to work hand-in-hand with the management team to extend that growth over the coming quarters.”

About Chegg.com
Chegg.com is the number one textbook rental company. Chegg.com founded in 2005, launched its textbook rental service in July 2007, Chegg.com has saved students at 4,000 plus campuses nationwide, millions of dollars. With over 1 million books to choose from, Chegg.com makes renting and returning textbooks as easy as a click of a mouse. On top of added savings, Chegg.com will plant a tree for every book rented. To date Chegg.com has funded over 150 plus city blocks of trees. For more on Chegg.com, log on to www.Chegg.com.