Indian education technology startup Eruditus is in final talks to raise around $150 million in new funding, two sources familiar with the matter told TechCrunch, which would mark the largest funding round by an Indian education company in recent years.
Private equity giant TPG is in talks to lead the investment, the people said. The new investment could value Eruditas at up to $2.3 billion, under the terms of the proposal, they added, asking not to be identified because the talks are ongoing.
The valuation is tied to Eruditas hitting certain performance targets. If it fails to hit those milestones, the startup's value could fall to at least $1.8 billion, the sources added. The potential new valuation would be down from the $3.2 billion Eruditas was valued at in its last funding round in August 2021.
The sources cautioned that the terms of the deal could change in the coming weeks. Eruditas' backers include the Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, Canada Pension Plan Investment Board and Peak XV.
Founded 14 years ago, Eruditus partners with some of the world's leading universities to deliver executive education programs for corporations and individuals. The startup derives more than two-thirds of its revenue from international markets.
TPG declined to comment. Eruditus did not respond to a request for comment outside business hours.
The $150 million investment in education technology companies could revitalize an industry that has struggled since schools reopened following the pandemic, with many edtech companies facing valuation losses or closures as growth stalls with the return to in-person learning.
India's edtech market has also been shaken by the sudden collapse of Bijoux, once valued at $22 billion. The Bengaluru-based startup is embroiled in litigation, governance challenges and facing insolvency proceedings.