SoftBank-backed Eruditus has raised $150 million in a new funding round as the demand for upskilling remains robust, marking a rare growth area among online education platforms that have otherwise experienced a significant decline since the pandemic.
The funding round coincides with the company’s decision to shift its domicile to India from Singapore, CEO and Co-founder Ashwin Damera told YourStory. Eruditus joins a growing list of Indian startups relocating back to India with plans for an eventual listing on local stock exchanges.
“We will start work with the Big Four (audit firms) and lawyers and maybe by early next year, file for the reverse flip [relocating to India],” Damera told YourStory.
The CapTable, last month, had reported how India’s stock markets are increasingly attracting startups to list in the country.
Private equity firm TPG’s The Rise Fund led Eruditus’ Series F funding round with a $100 million investment, at a slightly lower valuation of $3.1 billion. The remaining funds came from existing investors, including SoftBank, Accel, Leeds Illuminate, CPP Investments, and The Chan Zuckerberg Initiative, according to a company statement on Friday.
According to a regulatory filing seen by YourStory, Eruditus has already secured $146 million from TPG, SoftBank, Leeds Illuminate and CPP, and is expecting another $3 million from The Chan Zuckerberg Initiative. The allotment of shares happened in Singapore on Thursday.
Eruditus, previously valued at $3.2 billion, had been seeking fresh capital for over a year. It initially aimed for a mix of primary and secondary investments but ultimately raised a fully primary round, Damera said. Last year, Eruditus had raised around $30 million in debt from Mars Growth Capital.
The fresh capital will help Eruditus pursue acquisitions and investments that have historically driven its growth, particularly in strategic markets like India and the US. Damera noted that the company is focusing on acquisitions in sectors such as enterprise solutions and study abroad programmes. It is also considering expanding its offerings through acquisitions in undergraduate and postgraduate degree programmes.
Following the company’s reverse flip, Eruditus will prioritise expanding its operations in India. Damera said the country is currently the fastest-growing segment for the company, with the Asia-Pacific region accounting for 27-28% of its consolidated revenue. The US remains Eruditus’ largest market, contributing nearly 40%. Damera expressed a goal of having India contribute 40-45% to Eruditus’ revenue “in coming years.”
In FY24, Eruditus’ booking revenue grew by 15% from the previous year, reaching about Rs 3,800 crore, according to Damera. Although growth slowed compared to the 65% jump the previous year, the company achieved EBITDA profitability, with Rs 80 crore in earnings. The company, which follows a July-to-June financial year, reported Rs 3,200 crore in revenue the prior year. For the current fiscal year, Eruditus is targeting 30% revenue growth, aiming for Rs 5,000 crore.
In a statement, Eruditus said it will also use the newly raised funds to invest in artificial intelligence (AI) to enhance the learner experience, expand its fast-growing enterprise business, and strengthen its presence in India and the Asia-Pacific region. Eruditus also noted that the need for AI-related training helped drive 45% growth in its enterprise solutions last year.
Founded in 2010 by Damera and Chaitanya Kalipatnapu, Eruditus partners with more than 80 universities worldwide to provide professional learning programmes for working professionals. The company offers over 700 such programmes and has raised more than $1 billion in equity and debt, making it one of India’s highest-valued edtech firms.
In India, Eruditus faces competition from Ronnie Screwvala’s upGrad, which saw restructuring earlier this week with its co-founder and managing director stepping down from his executive role.
