Eruditus, the Indian edtech start-up, is reportedly close to securing a significant investment from TPG, a leading private equity firm. According to TechCrunch, TPG is in advanced talks to lead a $150 million funding round for Eruditus, which could mark one of the largest fundraising efforts by an Indian education company in recent years.
The new investment is expected to value Eruditus at up to $2.3 billion, a figure contingent upon the start-up meeting specific performance targets. Should these targets not be met, the valuation could drop to a minimum of $1.8 billion. This valuation reflects a decrease from the $3.2 billion Eruditus achieved during its last funding round in August 2021.
Founded 14 years ago, Eruditus partners with top global universities to offer executive education programs, with over two-thirds of its revenue generated from international markets. Discussions for the funding began last year, initially aiming for a $50 million secondary round to allow early investors to exit. However, following a full year of EBITDA profitability, Eruditus decided to pursue a larger round, aiming to close it before relocating its base from Singapore to India.
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The proposed $150 million round would be Eruditus’s first significant equity raise since August 2021. In the interim, the SoftBank-backed start-up secured $350 million in debt from the Canada Pension Plan Investment Board (CPPIB) in 2022 to fuel mergers and acquisitions and consolidate its position in a competitive market. Looking ahead, Eruditus plans to shift its domicile from Singapore to India within the next 12-18 months, signalling a strategic move in its ongoing expansion.
