Indian EdTech startup Eruditus raises $150 million in funding at a $3 billion valuation

Indian ed-tech startup Eruditus announced on Friday that it has secured $150 million in Series F funding, led by private equity firm TPG. This investment brings the company’s valuation to $3 billion and includes backing from SoftBank, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative.

The new funding will help Eruditus build AI-driven teaching tools, expand its course offerings for businesses, and strengthen its focus on the Indian market. As part of its growth plans, the company is also exploring the possibility of going public in India.

This investment follows a $210 million funding round for another Indian ed-tech startup, Physics Wallah, which was led by Hornbill Capital. Physics Wallah’s valuation soared to $2.8 billion, marking a significant leap from its previous valuation of $1.1 billion.

Despite these success stories, the Indian ed-tech sector is navigating some tough waters. So far this year, ed-tech companies have raised only $575 million, a steep drop from the $5.37 billion raised in 2021, according to data from Tracxn.

Founded in 2010 by Ashwin Damera and Chaitanya Kalipatnapu, Eruditus collaborates with over 30 top universities, including MIT, Columbia, Harvard, and Cambridge, to offer executive education programs. With a global reach, Eruditus has launched more than 100 courses and has enrolled students from over 80 countries. The company offers courses in multiple languages, including Spanish, Portuguese, and Mandarin, and operates from its headquarters in Singapore with a team spread across six countries.

While the pandemic fueled a boom in online education, it also exposed the sector to significant challenges. For instance, Byju’s, another major player in the space, has faced multiple insolvency proceedings, with experts pointing to aggressive acquisitions and management issues as contributing factors.

Currently, India accounts for 28% of Eruditus’ business, but CEO Ashwin Damera is keen on increasing that share to 50% over the next five years. As part of its post-fundraise plans, Eruditus will also be relocating its headquarters from Singapore to India.

“Today, India for us is about 28% of our overall business, and over the next five years, I would love to see India be at least 50% of what we do,” Damera told Reuters in an interview.

In 2022, Eruditus became one of many startups to implement layoffs, cutting 40 positions from its team. According to CEO Ashwin Damera, of the 80 recent departures, half were voluntary resignations.