Report: Chegg Picks Banks For Their IPO
Chegg is a textbook rental company that has been growing at a rapid pace. Chegg is working with two banks to lead the IPO, according to sources with Reuters. Chegg is going to work with JPMorgan Chase & Co. and Bank of America. Chegg may raise around $200 million from the IPO.
Founded in 2007, Chegg has raised over $200 million in funding from Insight Venture Partners, Foundation Capital, Gabriel Venture Partners, and Kleiner Perkins Caufield & Byers. Chegg plants a tree for every textbook that they rent or sell. So far, over 5 million trees have been planted thus far.
Chegg has raised a total of $242 million in venture capital funding. The company’s most recent round was $25 million in Series F with a post-money valuation at $680 million in March 2012.
Chegg was originally coined a “Netflix for textbooks.” The service helped college students save money on expensive textbooks by being able to rent them out instead of having to buy them.
When we wrote about Chegg in March 2012, the company had 200 employees and over 4.5 million users. Chegg has expanded their platform to include homework note-sharing, class planning, the ability to find tutors, and even recruit athletes.