MUMBAI: Edtech startup Eruditus has raised a fresh $150 million in funding led by TPG even as the collapse of India’s biggest edtech startup Byju’s continues to deter investors from making heavy investments in the segment. The company’s existing investors SoftBank (through Vision Fund 2), Accel, Chan Zuckerberg Initiative, Leeds Illuminate and CPP Investments also backed the funding round which values Eruditus at about $3.1 billion, almost unchanged from its previous valuation of $3.2 billion at which the company had raised $650 million from investors in 2021.
Had the Byju’s meltdown not happened, it would have been easier for Eruditus to close the funding round sooner, said co-founder and CEO Ashwin Damera. “This has been a longer, tougher fundraise than before. We came across many funds which showed interest but eventually came back and said we do not want to do anything in education in India,” Damera told TOI.
The startup, Damera said, turned profitable on EBITDA basis in FY24 and the firm’s ability to execute well may have worked in its favour in a difficult funding environment for the edtech space. Eruditus operates in the higher education space which has takers as people increasingly look to upskill themselves in an evolving landscape where technology is changing the way organisations and people work. The startup partners with universities to offer degree programmes and professional certificates to its users. “In FY25, we should achieve net profitability as well,” said Damera.
Portions of the fresh funds will be used to bolster the firm’s AI capabilities and make smaller acquisitions in the range of $20-$50 million. The startup is not in a rush to file for an IPO unlike many of its industry peers, Damera said, adding that it is rather focused on shifting its domicile from Singapore to India, the process for which will start sometime early next year.