TPG leads $150-mn round in edtech firm Eruditus

Eruditus CEO and co-founder Ashwin Damera

Higher education and upskilling platform Erudtius has raised $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, according to a statement from the company released on October 18.

Existing investors such as Softbank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments and the Chan Zuckerberg Initiative also participated in the round and increased their stake in the company. Erudtius was valued at $3.1 billion in the fresh fundraise, unchanged from last time.

This is the second large ticket fundraise by an edtech after PhysicsWallah (PW) raised $210 million at a valuation of $2.8 billion last month.  

The funding into Eruditus and PW comes despite the sector appearing to have lost its sheen in India, thanks to the downfall of Byju’s. The beleaguered startup, once the poster boy of Indian startups and the most valuable edtech in the world, is now grappling with issues to stay afloat even after raising a total of $5 billion during its lifetime.

Moneycontrol was first to report about TPG leading a $150-million round in Eruditus on August 25.

The fresh funds will be used to grow Eruditus’ global presence and invest in AI technology. The money will also be used to expand the company’s growing business and deepen its investments in the India and Apac regions. It will also scout for acquisitions and investment opportunities to further its growth.

“Eruditus’ mission aligns with a core investing theme for The Rise Funds, which focuses on backing strong businesses that are opening pathways to high-quality education and driving greater lifetime earning potential for their students,” said Steve Ellis, managing partner of The Rise Funds.

As part of The Rise Fund’s investment, TPG’s Simit Batra will join Eruditus’ board of directors.

“With this investment, we're excited to continue to grow and innovate to meet market demand,” said Ashwin Damera, CEO of Eruditus. “In a rapidly evolving business environment, we have reimagined education by bringing programmes from the world’s leading universities to learners around the globe. Education is the key to transformation, for individuals, companies, and society and we’re appreciative of the support of our investors who enable us to accelerate our growth.”

Now that the fundraise is complete, Eruditus will work on flipping its domicile from Singapore to India over the next 12-18 months, as reported earlier.

The fresh $150 million will be Eruditus’ 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.