Eruditus is an Edtech unicorn turned startup that announced its plans to raise $150 million from Texas Private equity firm TPG at a valuation of 2.3 billion USD. The company plans to reverse flip to India before its Initial Public Offerings. The funding round might have the participation of some new and existing investors. The funding round may come when the startup shifts its domicile from Singapore to India.
The company intends to use these fresh proceeds to scale its production, improve its platform capability, and launch new categories. The edtech startup uses advanced technology to offer the best learning experience. The online platform provides executive-level programs for professionals with course completion certificates.
The company offers programs for comprehensive management and general management. The startup turned unicorn after securing an investment of $50 million from investors including Accel and Soft Bank Vision Fund II at a valuation of $3.2 billion. However, the valuation decreased by 28 percent to 2.3 billion after the startup faced challenges and poor market conditions.
The edtech unicorn secured a total funding of $811 million across multiple funding rounds since its inception, including the conventional debt funding round of 350 million USD in 2021. The company is also focused on transforming the edtech sector by offering innovative solutions in tech education across India. This investment will enable the startup to launch more services and use advanced technologies to minimize the gap between textbook education and the industry.
The company faces competition from other edtech platforms including Augment, UpGrad, BYJUs, and more. The data intelligence startup, tracxn reported that the company has 11 institutional investors including Peak XV partners, Bertelsmann India Investments, and Accel.
The company faced a net loss of Rs 1,049 crore in FY23. However, the gross revenue increased by 75 percent to Rs 3,320 crore in the same duration. The Indian Edtech startup ecosystem saw an 88 percent YoY decrease as it secured $282 million in 2023 compared to $2.4 billion raised in 2022.
The overall deals raised by the edtech sector saw a 45.91 percent decline to 139. Despite the drop in fundraising the announcement by Eruditus highlights the market potential of the firm in this sector. The company aims to reverse flip to India and join other companies like Zepto, Flipkart, and RazorPay.
Conclusion:
Eruditus plans to receive 150 million USD investment in a fresh funding round from the private equity firm TPG at a valuation of $2.3 billion. The funding round might have the participation of several new and existing investors. The startup intends to use the fresh capital to expand its team, scale its operations, and enhance its platform capability while expanding its services.
The company aims to introduce new certification courses for professionals. The company provides an online platform with executive-level programs and course completion certifications. The edtech sector in India has been declining for the past few months. The startup plans to reverse flip to India and raise this funding round.
