Edtech startup Vedantu raises $11 million led by ABC World Asia, Accel India, others

Bengaluru-based edtech startup Vedantu has raised $11 million through convertible notes, in a round led by ABC World Asia, an impact investment fund backed by Temasek.

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Existing backers Accel India and Omidyar Network also participated. The infusion is reportedly part of a larger funding process that includes discussions with new investors for additional capital and a secondary sale to provide exits to some early shareholders, including Chinese investors.

A convertible note is a short-term debt instrument that converts into equity at a later date, typically during a future funding round or an IPO.

The company plans to deploy the fresh capital into expanding its presence across new categories, both organically and through acquisitions, while increasing investments in technology, AI, and adaptive content. 

Vedantu has previously expanded through acquisitions, most notably buying test-prep firm Deeksha in late 2022 for $40 million in a cash-and-stock deal.

Founded in 2011 by Krishna, Anand Prakash, Saurabh Saxena and Pulkit Jain, Vedantu became a unicorn in September 2021 when it raised $100 million, also led by ABC World Asia. It currently operates more than 100 hybrid centres, employs over 1,200 teachers, and serves more than two lakh paying students.

The company has also seen an improvement in financial performance. It ended FY25 with collections of Rs 284 crore, up 55% from the previous year, while reducing cash burn by 30% to Rs 70 crore. It turned profitable in the March 2025 quarter with Rs 90 crore in collections and posted Rs 110 crore in collections in the following April-June quarter, with cash flow turning positive by Rs 6 crore.

For FY24, Vedantu reported operating revenue of Rs 185 crore and reduced losses by 58% to Rs 157 crore.

Currently, Vedantu’s annual revenue run rate stands at Rs 400-430 crore. The company has set a long-term goal of reaching Rs 700-800 crore in topline with Rs 80–100 crore in profits.