Executive education leader Eruditus has successfully raised $150 million in a new funding round, spearheaded by TPG Rise, the impact investment arm of US-based private equity firm TPG. The funding round maintains Eruditus’ valuation at $3.2 billion post-money, with TPG Rise contributing $100 million. Other prominent participants include SoftBank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative.
This latest funding reinforces Eruditus’ position as the largest Indian edtech company by revenue, having reported ₹3,800 crore in FY24. The company is on track to surpass ₹5,000 crore in revenue during the current fiscal year. Eruditus is also planning to shift its headquarters from Singapore to India, joining the ranks of other Indian startups with holding companies overseas.
According to co-founder Ashwin Damera, the extended timeframe to close this funding round stemmed from global investors’ concerns about the Indian edtech sector, particularly in light of Byju’s challenges. However, Eruditus has managed to reassure investors by highlighting its strong fiscal performance, projecting ₹5,000 crore in revenue and an estimated ₹300 crore in EBITDA for FY25.
The fresh capital will primarily be used for expansion, with Eruditus eyeing opportunities in postgraduate and undergraduate education in addition to its current focus on executive education. The company also plans to increase its university partnerships from 80 to 150 and invest in its study-abroad services.
Eruditus is strategically preparing for a potential IPO within the next two years, with plans to maintain a 25-30% annual growth rate. The firm aims to achieve a topline of ₹15,000 crore, which will be crucial for determining its valuation multiples when it eventually goes public. A portion of the funds raised may also be allocated towards servicing its debt, although the payment is not due for another two years.
This funding round follows the recent $210 million raised by PhysicsWallah, marking another significant deal in the edtech space, as Eruditus’ competitor Upgrad is also in the process of closing a $50-60 million round.