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Two sources familiar with the situation told TechCrunch that Eruditus is in advanced talks to secure $150 million in funding. This would be the largest fundraising by an Indian education company in years.
Sources said that TPG, an important private equity player, was in talks to lead the investment. According to the proposed terms, Eruditus will be valued at up to $2.3billion, according to the sources, who requested anonymity because the deliberations were ongoing.
Eruditus must meet specific performance targets to receive this valuation. The sources said that if the startup fails to meet these milestones, its value could drop to $1.8 billion. The new potential valuation is , a decrease compared to the $3.2 billion that Eruditus received during its last funding round of August 2021.
Sources cautioned that the terms of the deal may still change in the weeks to come. Eruditus has as its backers Chan Zuckerberg Initiative (CZI), Prosus Ventures (Prosus), Accel, SoftBank Canada Pension Plan Investment Board, Peak XV, and SoftBank.
Eruditus was founded 14 years ago and collaborates with top global universities to offer executive education programs to businesses and individuals. Over two-thirds (63%) of the startup’s revenue comes from international markets.
Eruditus or TPG did not immediately respond to requests for comment made outside of business hours.
The $150 million investment into an edtech company could revitalize a sector that’s struggled since schools reopened after the pandemic. Many edtech firms have been forced to close or devalue their companies as the return of in-person learning has slowed down their growth.
The Indian edtech industry is also reeling after the collapse of Byju’s, which was once valued at $22billion. The Bengaluru-headquartered startup is mired in lawsuits and governance challenges and staring at insolvency proceedings.