Eruditus, an Indian edtech startup, is currently in advanced discussions to secure approximately $150 million in new funding. If successful, this would mark the largest fundraise by an Indian education firm in years. The investment round is said to be led by TPG, a major private equity player. Under the proposed terms, Eruditus would be valued at up to $2.3 billion. However, this valuation is contingent upon the startup meeting specific performance targets. Failure to achieve these milestones could result in a decrease in value to at least $1.8 billion. It’s worth noting that this potential valuation represents a decline from the $3.2 billion valuation Eruditus received during its last funding round in August 2021.
While the terms of the deal are subject to change in the coming weeks, Eruditus has an impressive roster of backers, including Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, Canada Pension Plan Investment Board, and Peak XV. These partnerships speak to the startup’s credibility and the confidence placed in its business model.
Eruditus, founded 14 years ago, specializes in collaborating with renowned global universities to provide executive education programs for both businesses and individuals. Notably, the startup generates more than two-thirds of its revenue from international markets, highlighting its global reach and appeal.
Both Eruditus and TPG have refrained from commenting on the potential investment outside of business hours, leaving room for speculation and anticipation. If the $150 million investment materializes, it could inject new life into the struggling edtech sector, which has faced challenges following the reopening of schools post-pandemic. Many edtech companies have experienced devaluations or closures as the demand for online learning diminished with the return to in-person education.
Furthermore, the Indian edtech market has been shaken by the recent collapse of Byju’s, a once highly valued startup with a worth of $22 billion. Byju’s is currently embroiled in legal disputes and governance issues and is now facing insolvency proceedings. This development has left a void in the industry and underscores the need for fresh investments and innovation to revive the sector.
In summary, Eruditus’ potential $150 million funding round could bring a much-needed boost to the edtech industry in India. With the support of TPG and its existing partners, Eruditus has the potential to further expand its global reach and solidify its position as a leading provider of executive education programs. As the sector grapples with the aftermath of the pandemic and the challenges posed by the collapse of Byju’s, this investment could serve as a catalyst for growth and revitalization in the Indian edtech market.
