Eruditus raises $350 million debt from CPPIB

(Representative image)

Online education firm Eruditus has raised $350 million in debt from Canada Pension Plan Investment Board, a global investment management company, largely to fuel mergers and acquisitions.

Eruditus, which ties up with top universities such as Columbia, INSEAD and others to provide executive education and MBAs, plans to make acquisitions worth a billion dollars in the next year or so, said people familiar with the matter.

Reportedly, the company has gross bookings worth $500 million for FY22, and is growing 2.5 times year-on-year.

CPP Investment Board is also an existing equity investor in Eruditus, having participated in its $650 million funding round last year, valuing it at $3.2 billion.

The deal will "expand our mission of making education accessible around the world by deepening our investment in the education space to reach different segments and audiences. Our acquisition pipeline will enable us to accelerate growth, impact more learners and improve our profitability," co-founder and CEO Ashwin Damera said.

In May last year, Eruditus acquired iD Tech, a coding, game development and short term courses company for kids in a $200 million cash deal.

Eruditus' other investors include Sequoia India, Accel, Prosus (Naspers), SoftBank and the Chan Zuckerberg Initiative.