Despite Challenges in the Indian Edtech Sector, Eruditus Poised to Raise $150 Million in New Funding Round Led by TPG

• 29 Aug 2024

Despite Challenges in the Indian Edtech Sector, Eruditus Poised to Raise $150 Million in New Funding Round Led by TPG

 

Higher education and upskilling platform Eruditus is nearing a significant funding milestone, with plans to raise $150 million in a new round led by TPG, according to sources familiar with the matter.

 

This investment comes despite a challenging landscape for the edtech sector in India, which has recently been marked by turmoil. Notably, Byju’s, once a leading figure in the Indian edtech space and the world’s most valuable startup in this sector, is struggling to maintain its position. After raising $5 billion, Byju’s has seen its valuation plummet from $22 billion in 2022 to a mere $20 million, as it faces difficulties in securing $200 million in funding.

 

Similarly, Unacademy, another major player in the Indian edtech arena, is reportedly exploring acquisition options, highlighting the sector’s ongoing challenges. While Byju’s and Unacademy primarily focus on K-12 education and test preparation, Eruditus, which operates in higher education, appears to be weathering the storm better. This resilience likely explains the sustained investor interest in the company.

 

“The discussions for this funding round began last year. Initially, the plan was to conduct a smaller $50 million secondary round, allowing early investors to exit. However, after achieving a full year of EBITDA profitability, Eruditus opted to pursue a larger round and close it before transitioning its base back from Singapore to India,” one source said.

 

Following the completion of this funding round, Eruditus is expected to maintain a valuation of approximately $3 billion.