Eruditus Valuation: Indian Edtech Firm Reaches $3.2 Billion

Eruditus Secures $650 Million Funding

Eruditus, a Mumbai-based company collaborating with leading global universities, has announced a new financing round of $650 million. This investment will support the expansion of its executive-level course offerings.

Valuation and Investors

The funding round, encompassing both primary and secondary transactions, has elevated the 10-year-old Indian startup’s valuation to $3.2 billion. This represents a significant increase from its valuation of approximately $700 million just a year prior.

Accel and SoftBank Vision Fund 2 spearheaded the investment. The Canada Pension Plan Investment Board also participated in this latest funding initiative.

Strategic University Partnerships

Eruditus has established partnerships with over 30 prestigious universities worldwide. These include institutions such as MIT, Harvard, Columbia, Cambridge, INSEAD, Wharton, UC Berkeley, IIT, IIM, and NUS.

These collaborations focus on the development of higher education programs designed to meet the evolving needs of students. Course fees range from $5,000 to $40,000.

Future Plans and Fund Allocation

The newly acquired funds will be strategically allocated towards the creation of additional courses and the development of innovative new products. This investment aims to enhance the learning experience and broaden the company’s reach.

“We’re excited to scale our unique business model, continue to deliver strong learning outcomes and grow our global impact at a rapid rate,” stated Ashwin Damera, co-founder and CEO of Eruditus.

Mr. Damera reportedly divested equity valued at up to $100 million during this funding round.

India's Thriving Startup Ecosystem

This funding round occurs amidst a period of record-breaking capital inflows into Indian startups. India, currently the world’s second-largest internet market, has seen the emergence of over 23 unicorns this year.

This figure is a substantial increase compared to the 11 unicorns created last year and the 6 in 2019. Investor interest in the South Asian market has also grown, particularly following regulatory changes in China.

Industry Perspective

“With the rapid rate of technological disruption, continuous upskilling is necessary in today’s job market,” commented Sumer Juneja, partner at SoftBank Investment Advisers.

He further emphasized that Eruditus’s partnerships with elite universities, combined with its utilization of technology and data, positions the company as a leader in the educational space.

SoftBank's Continued Investment in Edtech

This marks SoftBank’s second significant investment in India’s edtech sector. The firm also provides backing to Unacademy.

Competitive Landscape

Other Indian startups are also experiencing significant growth and investment. UpGrad, a Bangalore-based company specializing in higher education and upskilling, recently achieved unicorn status.

VerSe Innovation, the operator of news aggregator Dailyhunt and short video platform Josh, announced the raising of over $450 million in a new financing round earlier Thursday.