BENGALURU, Oct 18 (Reuters) – Indian educational technology company Eruditus has raised $150 million in a new funding round led by private equity firm TPG, marking a significant milestone at a time when the funding environment for edtech companies has been subdued.
Eruditus’ Series F round, which also saw participation from existing backers SoftBank, Leeds Illuminate, Accel, CPP Investments, and Chan Zuckerberg Initiative, was raised at a valuation of $3 billion. Co-founder and CEO Ashwin Damera told Reuters that the focus will be on building AI products for teaching experiences, expanding sales of courses to enterprises, and doubling down on the Indian market, especially as Eruditus considers going public in India in the future.
“Today, India accounts for approximately 28% of our overall business, and over the next five years, I would love to see India represent at least 50% of our operations,” Damera stated.
However, the Indian edtech sector is facing challenges. Including Eruditus, edtech companies in India have raised only $575 million this year, a stark contrast to the $5.37 billion raised in 2021, according to information provider Tracxn. Notably, edtech firm Physics Wallah raised $210 million last month.
Following this fundraising round, Eruditus will initiate the process of shifting its domicile from Singapore to India, Damera said. The company is among several startups looking to change their legal address to India due to better public listing prospects.
Companies in India have raised over $9 billion through IPOs this year, surpassing the $7.42 billion raised in 2023, according to data compiled by LSEG. However, Damera did not provide a specific timeline for a potential listing.
“We have to ask ourselves what’s the right time for us as a company for an IPO. We just have a new investor, and we’ll have a discussion. We’re not rushing to go public right away; we still have a lot to build and accomplish,” he added.
