Eruditus in Advanced Talks to Raise $150 Million, Considers Reverse Flip to India Ahead of IPO

EdTech unicorn Eruditus is reportedly in advanced discussions to secure $150 million in fresh funding, led by Texas-based private equity firm TPG, at a potential valuation of $2.3 billion. This marks a significant drop of 28% from its previous valuation of $3.2 billion in August 2021, when Eruditus entered the unicorn club after raising $650 million from investors including Accel and SoftBank Vision Fund II.

The new valuation, however, is contingent upon Eruditus meeting specific performance milestones. If these targets are not met, the company could see its market capitalization decrease further to $1.8 billion, according to sources cited by TechCrunch. Should the funding be secured, it would be Eruditus’ first equity infusion since August 2021.

Founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera, Eruditus offers a range of online courses from renowned global business schools such as Columbia, MIT, London Business School, and Harvard Business School, covering subjects like artificial intelligence, data science, and coding. The Mumbai-based startup also partners with top Indian institutions, including IIT Kozhikode and IIM Lucknow.

Eruditus competes with industry giants such as BYJU’S, upGrad, and NYSE-listed Coursera. The company has raised over $1.16 billion in funding as of March 2022, backed by notable investors like SoftBank, Accel, Peak XV, and the Canada Pension Plan Investment Board.

The $150 million investment coincides with reports that Eruditus is considering a reverse flip to India from Singapore as it eyes an IPO on Indian exchanges within the next two years. This move aligns with a broader trend among Indian startups, with companies like PhonePe, Groww, and Pine Labs also reversing their domiciles to India.

Financially, Eruditus narrowed its net loss to INR 1,049 crore in FY23 from INR 2,680 crore in FY22, while reporting a 75% increase in gross revenue to INR 3,320 crore for the same period.