Edtech unicorn Eruditus raises $150 million in funding to invest in AI technology

Edtech unicorn Eruditus has raised $150 million in a Series F funding round led by TPG's The Rise Fund, the multi-sector strategy of TPG's global impact investing platform.

Existing investors, including SoftBank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative, also participated in the round.

The funding comes more than three years after the startup raised $350 million in debt in March 2022.

It had previously reached unicorn status in August 2021 during a $650 million equity round. 

Focusing on AI technology

The firm plans to use the raised capital to enhance its AI technology to improve the learner experience and to expand its business offerings to governments and enterprises. It will also focus on strengthening its presence in India and the Asia-Pacific (APAC) region. 

Additionally, the funds will support future acquisitions and investments that are expected to drive the company’s top-line growth and expansion into strategic markets globally. 

"With this investment, we're excited to continue to grow and innovate to meet market demand," said Ashwin Damera, CEO of Eruditus and Emeritus.

"In a rapidly evolving business environment, we have reimagined education by bringing programs from the world's leading universities to learners around the globe. Education is the key to transformation for individuals, companies, and society, and we're appreciative of the support of our investors who enable us to accelerate our growth," Damera added.

Eruditus' global reach and partnerships

Eruditus has established partnerships with over 80 universities worldwide, offering a broad range of programs, including short courses, degree programs, and professional certificates.

The company claims to have educated over 1 million individuals across 80 countries, focusing on key markets such as the U.S., Europe, and Asia.

With a workforce of more than 1,750 people, Eruditus operates out of offices in global hubs, including Mumbai, New York, Palo Alto, London, Singapore, and Dubai.

Financial performance

While Eruditus did not disclose specific financial details for the most recent period, the company reported significant revenue growth in FY23. The firm saw its revenue from operations grow by 70.39% to Rs 3,343 crore.

Eruditus also significantly reduced its losses by 66.1% from Rs 3,094 crore in FY22 to Rs 1,049 crore in FY23. 

According to Damera, Eruditus is also considering shifting its domicile from Singapore to India, driven by the potential for better public listing opportunities. However, Damera clarified that while the company is considering an IPO, there is no immediate timeline for going public.

Avendus Capital was the exclusive financial advisor for the fundraise.