Ed-tech unicorn Eruditus Secures $150 Million in Funding, Plans Domicile Shift to India
Eruditus, a prominent executive education startup, has successfully raised $150 million in a new funding round, maintaining a flat post-money valuation of $3.2 billion. The round was led by TPG Rise, an impact investment fund affiliated with the US private equity firm TPG. Notable existing investors, including SoftBank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative, also participated.
TPG Rise contributed $100 million, while SoftBank added another $20 million. This funding positions Eruditus as the largest Indian edtech firm by revenue, reporting ₹3,800 crore for FY24, and is projected to exceed ₹5,000 crore in revenue this fiscal year, according to founder Ashwin Damera.
Damera indicated that the company is initiating plans to shift its domicile from Singapore to India, following a trend among Indian startups with holdings in the US and Singapore. This decision comes after a prolonged funding round, attributed to ongoing uncertainties surrounding the edtech sector in India, particularly in light of challenges faced by competitors like Byju’s.
“Fiscal 2025, from July to June, is expected to yield nearly ₹5,000 crore in revenue, along with an estimated ₹300 crore in EBITDA,” Damera shared. “We just achieved profitability at the EBITDA level in FY24, and as a company of our size, it's prudent to maintain a cash reserve for potential mergers and acquisitions.”
Highlighting the company's strong performance metrics, Damera expressed optimism about the future, stating, “We are in a better position today... We are discussing a potential public listing in the next couple of years, aiming for a significantly higher valuation multiple.”
This funding round follows PhysicsWallah's recent $210 million raise, marking Eruditus as the second major transaction in the education technology sector, even as its smaller competitor Upgrad seeks to close a $50-60 million round with existing investors. Meanwhile, several edtech firms have ceased operations and returned capital to investors, as Byju’s continues to face its own challenges.
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