Popular textbook rental site Chegg.com continues to raise tremendous amounts of money — today it announced a $57 million fourth round, as well as $55 million in credit and debt.
The Santa Clara, Calif. company says it will use the extra $112 million (!) to meet the demands of its rapid growth. Chegg applies a Netflix-like model (where you check out the books you need at the beginning of the semester then send it back to Chegg at the end) to textbooks, which supposedly allows students to cut their costs by 60 to 75 percent. Chegg says it’s used by hundreds of thousands of students at 6,400 colleges.
The company also says it wants to use the new funding to improve customer service and striking more deals publishers, booksellers, and colleges.
Insight Venture Partners led the new round, and also provided the credit, while the debt comes from Pinnacle Ventures and TriplePoint Capital. The company has now raised a $84.2 million (not counting credit and debt), most in a round led by Kleiner Perkins Caufield & Byers.
Competitors include BookRenter.