- Expects Indian market to constitute at least 50% of its business within the next five years.
- Indian edtech sector has only raised only $575m this year compared to a staggering $5.37b in 2021.
In a significant development for the Indian educational technology landscape, Eruditus has successfully raised $150 million in its Series F funding round, led by the prominent private equity firm TPG.
The investment marks a pivotal moment for Eruditus, especially considering the prevailing subdued funding environment for edtech companies in India.
With this new capital injection, the company has achieved a valuation of $3 billion, reflecting continued investor confidence despite broader market challenges.
Eruditus has garnered support from a diverse array of existing investors, including SoftBank, CPP Investments, the Chan Zuckerberg Initiative, and others.
The company’s co-founder and CEO, Ashwin Damera, articulated a clear vision for the future, emphasising an enhanced focus on artificial intelligence products to enrich teaching experiences.
Competitive pressures
Furthermore, Eruditus aims to expand its offerings to corporate clients while significantly increasing its market presence in India, aspiring for the Indian market to constitute at least 50 per cent of its business within the next five years.
Despite this optimistic outlook for Eruditus, the broader Indian edtech sector is grappling with a stark decline in funding, having raised only $575 million this year compared to a staggering $5.37 billion in 2021, as reported by Tracxn.
The decline underscores the competitive pressures and evolving dynamics within the industry. Nevertheless, companies like Physics Wallah have demonstrated resilience, recently securing $210 million in funding, indicating that pockets of opportunity still exist.
In light of its recent funding success, Eruditus plans to transition its domicile from Singapore to India, aligning itself with regulatory frameworks that may offer better prospects for public listing.
Indian companies have notably raised over $9 billion through initial public offerings (IPOs) this year, surpassing the previous year’s total and suggesting a burgeoning appetite for investment in the region.
While Damera acknowledged the potential of an IPO, he emphasized a measured approach, indicating that the company prioritizes strategic growth and development before pursuing public listing opportunities.