Mumbai-based edtech startup Eruditus has raised $113 Mn in a Series D funding round led by Leeds Illuminate and Prosus Ventures, which was formerly known as Naspers Ventures. The Chan Zuckerberg Initiative (CZI), a non-profit organisation headed by Facebook CEO Mark Zuckerberg and his wife Priscilla Chan, has also participated in the Series D round.
Besides these, even existing investors Sequoia India and Ved Capital have infused capital in this round. Avendus Capital was the exclusive financial advisor to the edtech startup on the transaction, the company highlighted in its press release released on Tuesday(September 1).
Eruditus plans to use this funding to increase its engagement with existing and new partner universities, deepen its operations in emerging markets and invest in creating career-ready courses to meet the skills required of the global workforce in a post-pandemic world.
According to media reports published last week, the edtech startup’s valuation has almost doubled from $400 Mn to $800 Mn – $850 Mn with this round. The company was valued at $400 Mn last January, after raising $40 Mn in Series C round led by Sequoia Capital India. The round also saw participation from existing investor Bertelsmann India Investments.
Eruditus was founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera. It provides executive education programmes in association with global business schools such as MIT, Columbia, Harvard Business School, INSEAD, Tuck at Dartmouth, Wharton, UC Berkeley and London Business School. These programs are held for six to eight months and can be available via on-campus, off-campus and online modes.
Eruditus’ cofounder and CEO Ashwin Damera believes that its partnership with Leeds Illuminate, Prosus Ventures and the Chan Zuckerberg Initiative (CZI) will provide strategic value that goes beyond capital to support its growth and global expansion. “Covid-19 is dramatically accelerating change across higher education. We are engaging more deeply with universities worldwide to help them expand their online portfolio and global footprint,” he added.
Commenting on the investment, Susan Cates, managing partner of Leeds Illuminate, said, “Eruditus delivers tremendous value to working professionals and global universities, and we are delighted to partner with this team… Innovative and interactive courses focused on skills of the future, delivered by sought-after global brands, create upward economic mobility for learners across the world. Eruditus provides the connective tissue to facilitate talent’s rise and global universities’ reach.”
Previously, a Moneycontrol report highlighted that Eruditus had recorded a revenue of $100 Mn in the financial year 2020, ending March. During the pandemic, the company has witnessed a growing demand of 30% quarter-on-quarter. A person aware of the matter also told the publication, “Eruditus has been growing well and has been a real revenue business from Day 1. Covidhas only boosted their business thesis.”
According to Inc42 Plus, the Indian online learning market is expected to be worth $1.96 Bn by 2021.