Eruditus, an Indian edtech startup, is currently in advanced discussions to secure about $150 million in new funding, according to two sources familiar with the matter who informed TechCrunch. This would be the largest fundraising effort by an Indian education firm in years.
TPG, a major private equity player, is in talks to lead the investment, the sources mentioned. The new investment could value Eruditus at up to $2.3 billion, as per the proposed terms. The sources, who chose to remain anonymous due to ongoing negotiations, added that this valuation is dependent on Eruditus meeting specific performance targets. If these milestones are not met, the startup’s value could drop to at least $1.8 billion. This potential new valuation marks a decrease from the $3.2 billion valuation Eruditus had during its last funding round in August 2021.
The terms of the deal may still change in the upcoming weeks, cautioned the sources. Eruditus has support from Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, Canada Pension Plan Investment Board, and Peak XV among its investors.
Founded 14 years ago, Eruditus collaborates with top global universities to offer executive education programs for businesses and individuals. The startup generates more than two-thirds of its revenue from international markets.
TPG declined to provide a comment, and Eruditus did not respond to a request for comment outside of business hours.
The potential $150 million investment in an edtech firm could breathe new life into a sector that has struggled since schools reopened post-pandemic. Many edtech companies have faced devaluations or closures as growth slowed down with the return to in-person learning.
The Indian edtech market is also facing challenges following the sudden downfall of Byju’s, which was once valued at $22 billion. The Bengaluru-based startup is currently dealing with legal issues and governance challenges, as well as the threat of insolvency proceedings.
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