Indian edtech startup Eruditus is reportedly in advanced discussions to secure around $150 million in fresh capital, according to two informed sources who spoke to TechCrunch, potentially marking the largest funding round for a training institution in the country in recent times.
According to sources, TPG, a prominent private equity player, is in talks to lead the financing efforts. The proposed funding will value Eruditus at up to $2.3 billion, according to sources familiar with the negotiations, who requested anonymity given the confidential nature of the discussions.
The valuation is directly linked to Eruditus’ achievement of specific efficiency milestones in its assembly process. Failure to meet these key milestones could result in the startup’s value plummeting to a staggering $1.8 billion or worse. What the company was worth during its most recent funding round in August 2021 is represented by the potential new valuation.
Phrases of the deal may still undergo adjustments over the next few weeks, insiders warn. Eruditus boasts a prestigious investor roster, comprising the likes of Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, and the Canada Pension Plan Funding Board, as well as Peak XV.
Since its inception 14 years ago, Eruditus has partnered with premier global universities to provide bespoke government-backed education programs for both corporations and individuals. The startup derives more than two-thirds of its revenue from global marketplaces.
Eruditus and TPG failed to promptly respond to requests outside of regular business hours.
A potentially transformative $150 million investment in the edtech sector could reboot growth, following a challenging period since the pandemic’s impact on school reopenings? As pandemic-related learning disruptions subsided and students returned to traditional classrooms, several edtech companies experienced significant downturns or even ceased operations altogether due to stagnating growth.
The Indian edtech sector is still reeling from the unexpected implosion of Byju’s, once valued at a staggering $22 billion. The Bengaluru-headquartered startup is currently entangled in a web of lawsuits and governance issues.
