Eruditus, a leading global edtech platform offering executive-level programs for working professionals, is in the final stages of securing $150 million in a fresh funding round led by TPG. The investment, which is expected to maintain the company’s valuation at around $3 billion, underscores sustained investor confidence in higher education platforms, even as other segments of the Indian edtech sector face challenges.
The discussions to raise this round began last year, initially intended as a smaller $50 million secondary round to facilitate exits for early investors. However, following a full year of EBITDA profitability, Eruditus decided to expand the round. “The discussions to raise money started sometime last year and the initial plan was just to do a small $50 million secondaries round where some early investors would take an exit. However, Eruditus after achieving a full year of Ebitda profitability decided to kick off a larger round and close it before flipping its base back from Singapore to India,” a source familiar with the matter told Moneycontrol.
The company, which is backed by SoftBank, is also planning to shift its domicile from Singapore to India within the next 12-18 months. “The idea is to close the TPG round before the process to flip back begins,” the source added. Both TPG and Eruditus declined to comment on the ongoing discussions.
This $150 million equity round will be Eruditus’ first major fundraising since August 2021, when the company raised $650 million at a valuation exceeding $3.2 billion. Since then, Eruditus has primarily secured debt funding, including $350 million from the Canada Pension Plan Investment Board (CPPIB) in 2022, which was used to support mergers and acquisitions.
The completion of this funding round will mark the return of significant capital inflows into the Indian startup ecosystem, following recent large-ticket raises by companies like Zepto and Meesho. These developments indicate that while investors remain selective, they continue to back companies with strong growth potential.
In recent years, Eruditus has demonstrated significant growth and improved its financial position. The company’s operating revenue surged by 70% to Rs 3,343 crore in FY23, compared to Rs 1,962 crore in FY22. Simultaneously, Eruditus managed to reduce its losses by 66%, from Rs 3,094 crore in FY22 to Rs 1,049 crore in FY23.
“FY24 is likely to be the first full year of earnings before interest, taxes, depreciation and amortization (EBITDA) profitability for Eruditus,” said another source familiar with the company’s financials. However, the company is yet to close its FY24 books of accounts.
Founded in 2010 by Ashwin Damera and Chaitanya Kalipatnapu, Eruditus has raised over $814 million in equity funding to date, excluding the current $150 million round. Its backers include prominent investors such as SoftBank, Prosus, Peak XV Partners (formerly Sequoia Capital India), the Chan Zuckerberg Initiative, and GSV Ventures.