Indian edtech startup Eruditus is in advanced talks to raise about $150 million in new funding, two people familiar with the matter told TechCrunch, making it the largest funding raised by an Indian education company in years.
Major private equity firm TPG is in talks to lead the investment, the people said. The new investment would value Eruditus at up to $2.3 billion, according to the proposed terms, the people said, requesting anonymity because the deal is still ongoing.
The valuation is tied to Eruditus meeting certain performance targets. If these milestones are not met, the startup’s valuation could drop to at least $1.8 billion, the source added. The potential new valuation is a reduction from the $3.2 billion Eruditus was valued at in its last funding round in August 2021.
The terms of the deal could change in the coming weeks, the people warned. Eruditus cited the Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, Canada Pension Plan Investment Board and Peak XV as backers.
Founded 14 years ago, Eruditus partners with leading global universities to provide executive education programs for businesses and individuals. The startup generates more than two-thirds of its revenue from international markets.
TPG declined to comment. Eruditus did not respond to a request for comment outside of business hours.
A potential $150 million investment in edtech companies could provide a boost to a sector that has struggled since schools reopened after the pandemic. Many edtech companies faced write-downs or closures as growth stalled with the return to in-person learning.
The Indian edtech market has also been shaken by the sudden collapse of Byju’s, once valued at $22 billion. The Bengaluru-based startup is mired in litigation and governance issues and is headed for bankruptcy proceedings.
