Higher education and upskilling platform Eruditus is betting big on its portfolio of artificial intelligence (AI) programs, and its enterprise business to drive growth in the near- to medium term, said the firm’s co-founder and executive director Chaitanya Kalipatnapu, as demand for AI skills continues to rise
The company’s enterprise business includes upskilling and training programs for corporate workforces.
“We have invested a lot in developing our AI portfolio, partnering with leading global institutions like of MIT, Cambridge, and even Indian institutions like the IIMs and ISB… Our AI portfolio has grown more than 30-35 percent year-on-year,” Kalipatnapu told Moneycontrol on the sidelines of the ASU+GSV and Emeritus Summit.
All eyes on AI
This comes at a time when AI-related upskilling has taken centre-stage in India from a policy perspective as well, finding mention in both the Economic Survey and Union Budget this year.
In fact, as many as 96 percent of Indian professionals are using AI and generative AI tools at work, notably higher than countries like the US (81 percent) and UK (84 percent), according to a recent survey conducted by Emeritus that included 6,000 respondents across 18 countries.
“Our AI investments are not limited to creating more courses, but also developing infrastructure and learning experience platforms…(we are seeing) tremendous tailwinds on people wanting to be upskilled on AI. The idea is also to augment our existing courses to cover all AI-related aspects,” Kalipatnapu said.
The company is also banking on its enterprise business for growth. Currently, roughly 20-25 percent of Eruditus’ business comes from its enterprise business, which is expected to increase going forward.
“We have great penetration in India, Asia Pacific and Middle East markets, and we are trying to scale it further in Europe and the US. That is going to be an investment area for us,” added Kalipatnapu.
Funding galore
The company’s growth plans come hot on the heels of a major funding round. Eruditus picked up $150 million in a Series F round, led by TPG’s The Rise Fund, the multi-sector strategy of TPG’s global impact investing platform, in October last year, in what was its first major equity round since August 2021.
Back then, the company raised its largest-ever round of $650 million at a valuation of more than $3.2 billion. Since then, Eruditus has only secured debt from various institutions.
Excluding the latest round, Eruditus has raised over $814 million in equity funding to date and counts SoftBank, Prosus, Peak XV Partners (formerly Sequoia Capital India), Chan Zuckerberg Initiative, GSV Ventures among others as its backers.
Large rounds like the one raised by Eruditus helped bolster edtech funding in 2024, offering some much-needed respite to a sector that has been slower than others to recover from the funding winter.
Edtech startups in India raised a total of $652.5 million in funding across 81 funding rounds in 2024, up 136 percent from $276 million across 123 rounds in 2023. This was, however, much lower than the peak of $3.6 billion raised in 2021, according to data from Tracxn – a market intelligence platform.
Regardless, Kalipatnapu said that Eruditus’ diversified portfolio helped it navigate a difficult macroeconomic landscape.
“We consider ourselves a global company with Indian roots. Our enrolments are very diversified. India, for us, is 25-30 percent, and markets like the US and Europe are at a similar number. It is not like we are restricted or impacted by one geography,” he said.
Despite this, Eruditus’ India business, which contributes between 25-30 percent to the overall business, is growing rapidly. According to Kalipatnapu, it has grown over 38 percent YoY, driven by increasing partnerships with Indian universities, as well as global universities offering programs specific to Indian learners.
The firm is currently partnered with 87 universities globally, offering close to 850 programs. In India, the company works with between 15-18 universities.
Profitability push
The company is expecting significant improvements in its financial health, as it inches closer to its stock market debut.
“This year (FY25), we are expecting to grow over 20 percent. We are also on track to increase our profitability at least three-fold…On a booking basis, in FY24, we were profitable at Rs 28 crore. There might be some changes in this number when we file on an accrual basis. But it will not be very different,” Kalipatnapu said.
The company is currently in the process of shifting its domicile from Singapore to India, as it eyes an initial public offering (IPO) in the near future.
Eruditus is among several other edtech firms, including PhysicsWallah (PW) and UpGrad, that have outlined plans to go public.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
