Eruditus Eyes $150 Million Funding Boost: A Resurgence for Indian Edtech?
A Potential Valuation of $2.3 Billion
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Indian edtech startup Eruditus is in advanced negotiations to secure a substantial $150 million investment, potentially marking the largest funding round for an Indian education company in recent years. Sources familiar with the matter have revealed that TPG, a prominent private equity firm, is leading this proposed funding round.
If successful, this deal would value Eruditus at up to $2.3 billion, according to proposed terms. However, this valuation is contingent upon Eruditus achieving specific performance targets. Failure to meet these milestones could result in a valuation as low as $1.8 billion, sources have indicated.
A Shift from Previous Valuations
This potential new valuation represents a decrease from the $3.2 billion at which Eruditus was valued during its previous funding round in August 2021. This shift highlights the current economic climate and the challenges faced by many edtech companies globally.
A Strong Investor Base
Despite these challenges, Eruditus boasts a strong investor base that includes prominent names such as Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, Canada Pension Plan Investment Board, and Peak XV. This backing underscores the company’s potential for growth and success in the long term.
Focus on Global Markets
Founded 14 years ago, Eruditus collaborates with leading international universities to provide executive education programs for both businesses and individuals. Notably, over two-thirds of its revenue is generated from international markets, demonstrating its global reach and appeal.
Reviving the Edtech Sector?
This potential $150 million investment in an edtech company could signal a resurgence for the sector, which has faced headwinds since the reopening of schools post-pandemic. Many edtech companies have experienced devaluations or closures as their growth stalled with the return to in-person learning.
The Indian edtech market is also grappling with the recent collapse of Byju’s, once valued at $22 billion. The Bengaluru-headquartered startup is currently facing lawsuits and governance challenges, potentially leading to insolvency proceedings.
Eruditus’s potential funding round could provide a much-needed boost of confidence for the Indian edtech sector, demonstrating that there is still significant investor interest in this space.
