Private Equity Fund Investments
Edtech startup Eruditus raises $650-M from Accel, SoftBank, others; enters unicorn club
Mumbai-based edtech firm Eruditus has raised USD 650 million in a new funding round led by venture capital firm Accel US and Japan's SoftBank Vision Fund II. The online executive education startup will be valued at USD 3.2 billion post the investment, which is a mix of primary capital infusion and secondary stake sale by existing shareholders. The Canada Pension Plan Investment Board (CPPIB) has also invested in the firm through a mix of primary and secondary transactions in the latest financing, which will turn the company into a unicorn. Accel and Softbank Vision Fund 2 join Eruditus' existing backers, the Chan Zuckerberg Initiative, Sequoia Capital India, Bertelsmann, Prosus, and Leeds Illuminate. The company will use the primary funds to develop new courses in conjunction with university partners, create new products and industry verticals, expand its business serving governments and enterprises, double down on new geographical markets, and fund acquisitions. Eruditus started out with offline classes with faculty from Europe's INSEAD and IIM-Ahmedabad, teaching a 10 day-classroom program in a 5-star hotel for 10-15 people. From 2015 onwards, it started an online teaching model. For FY21, Eruditus recorded a revenue of USD 185 million, compared to USD 100 million in FY20. Last year, it had acquired iDTech in a USD 200 million deal to expand its offering in the K12 space.
From the Venture Intelligence PE-VC Deal Database: Between Apr-17 and Aug-20, Eruditus had raised over $160-M from Bertelsmann India, Sequoia Capital India, Chan Zuckerberg Initiative, Prosus Ventures and others.
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