Vedantu Nets $11 Mn In Ongoing Round To Go All Out On AI

SUMMARY

The startup plans to utilise the fresh funds to expand into new categories, and invest in AI, technology and adaptive content to enhance personalisation

The edtech is also in discussions with external investors to raise additional capital, and offer exits to existing Chinese and legacy shareholders via a secondary deal

After claiming profitability in Q4 FY25, Vedantu said that it continued to be in the black in Q1 FY26 with INR 110 Cr in collections during the quarter under review

Edtech unicorn Vedantu has raised $11 Mn (INR nearly INR 100 Cr) as part of an ongoing funding round from existing backers. The company did not disclose the name of the investors participating in the round.

In a statement, the company said that the fresh funds will be deployed to expand into new categories, both organic and inorganic opportunities. A chunk of the capital will also be invested in AI, technology and adaptive content to enhance personalisation.

The edtech startup said that the company is also in discussions with external investors to raise additional capital, and offer exits to existing Chinese and legacy shareholders via a secondary deal.

Meanwhile, the company is also gearing up to list on the exchanges in 2027.

“Over the last 18 months, we’ve demonstrated disciplined growth and a clear path to profitability. The upcoming external round and secondary process will further strengthen our balance sheet, align our shareholder base, and set us up for a potential public market listing in CY27,” said Vedantu cofounder and CEO Vamsi Krishna.

On its business momentum, the edtech unicorn said that it continued to be profitable in Q1 FY26. “With 110 Cr collections in AMJ’25 (April to May 2025, or Q1 FY26) also has been cashflow positive, Vedantu has been profitable for six months now,” added the company.

It also reiterated that it minted its first profitable quarter in Q4 FY25. The company also claimed that it clocked INR 90 Cr in “collections” during the quarter, up 67% YoY, while generating more than INR 6 Cr in free cash flow.

In the entirety of FY25, Vedantu also claimed that its collections grew 55% YoY to INR 284 Cr, and slashed cash burn by 30%.

Going forward, the edtech major has set its eyes on doubling down its presence in existing K10 and test preparation segments and expanding into new edtech categories.

Founded in 2014 by Krishna, Anand Prakash and Pulkit Jain, Vedantu offers online and offline courses for students enrolled in Classes 4 to 12. It also provides coaching for NEET and JEE entrance exams, and operates 100+ hybrid centres across India.

Vedantu claims to employ more than 1,200 teachers and caters to over 2 Lakh paid students.

The startup has raised more than $321 Mn in funding to date and counts the likes of names such as Temasek, Accel, Tiger Global, Coatue, WestBridge Capital, among others. The edtech giant last raised INR 19.25 Cr in a mix of debt and equity financing from Stride Ventures in 2024.

The fundraise comes as the broader edtech ecosystem continues to grapple with its own set of challenges.

In contrast with 2021 when investors were making a beeline to back edtech startups, the past few years have seen ventures like Front Row and Udayy shut shops, giants like BYJU’S and Lido Learning going bankrupt, Unacademy juggling heavy losses and scores of smaller potential players acquired by bigger rivals.

Largely to blame for this has been intensifying competition from offline players, stagnant revenues and heavy cash burn. In Vedantu’s case, what helped the edtech chart a turnaround, as Vamsi told Inc42 earlier this year, was tighter cost controls, focussing on offline expansion, and disciplined execution.