Blog

Emeritus, the global platform in making quality education accessible and affordable to individuals, companies, and governments around the world, has announced that it has secured $350 million in debt financing from Canada Pension Plan Investment Board (CPP Investments) through its subsidiary CPPIB Credit Investments Inc.

According to an official statement, the latest funding will be used by the Mumbai-based firm to fuel mergers and acquisition as part of a robust global growth strategy. 

Ashwin Damera, Co-founder and CEO, Emeritus and Eruditus, said,

“Emeritus will expand our mission of making education accessible around the world by deepening our investment in the education space to reach different segments and audiences. Our acquisition pipeline will enable us to accelerate growth, impact more learners, and improve our profitability.”  

After the completion of this debt financing, Emeritus claims that it will have raised more than $1 billion in debt and equity.

In August 2021, CPP Investments also participated in Emeritus’ $650 million Series E funding round, which  advanced Emeritus’ valuation to $3.2 billion, quadrupling its Series D valuation from August 2020.

Investors in Emeritus also include Accel, SoftBank Vision Fund 2, GSV, the Chan Zuckerberg Initiative, Leeds Illuminate, Prosus, Sequoia Capital India, Bertelsmann, and Chimera. 

Raymond Chan, Managing Director, Head of APAC Credit, CPP Investments, said,

“The investment is aligned with our strategy of pursuing high quality credit investments across Asia Pacific and delivering attractive risk-adjusted returns for our contributors and beneficiaries.” 

With a year-on-year growth rate of 120 percent, Emeritus estimates gross bookings of $500 million for the financial year.

As the company continues to grow 2.5x organically, Emeritus will also accelerate growth through inorganic initiatives. The pipeline of potential acquisitions is expected to contribute up to 30 percent of Emeritus’ top line and EBITDA in the next five years. 

Last year, Emeritus acquired Silicon Valley-based iD Tech, a company in youth STEM education, which marked Emeritus’ expansion into the K12 space. In FY21, it also claimed to reach learners in more than 80 countries and offer programs through partnerships with more than 50 of the world’s top universities.

Founded in 2015, Emeritus, part of Eruditus Group, has more than 2,200 employees globally and offices in Mumbai, New Delhi, Shanghai, Singapore, Palo Alto, Mexico City, New York, Boston, London, and Dubai.