TPG nears $150M in funding from India’s Eruditus at a $2.3B valuation

Eruditus, an Indian education technology startup, is in advanced talks to boost about $150 million in recent funding, two sources conversant in the matter told TechCrunch. It can be the biggest fundraising by an Indian education company in years.

Private equity major TPG is considering taking up a lead role in the investment, the sources said. The recent investment would value Eruditus at as much as $2.3 billion under the proposed terms, the sources added, requesting anonymity because deliberations were ongoing.

This valuation is tied to Eruditus hitting certain performance targets. Failure to hit these milestones could result in the startup’s value being eroded to at least $1.8 billion, the sources added. The potential recent valuation can be down from the $3.2 billion Eruditus was valued at during its last funding round in August 2021.

The terms of the deal could still change in the approaching weeks, the sources warned. Eruditus counts the Chan Zuckerberg Initiative, Prosus Ventures, Accel, SoftBank, the Canada Pension Plan Investment Board and Peak XV amongst its backers.

Eruditus, founded 14 years ago, partners with leading global universities to deliver executive teaching programs for firms and individuals. The startup generates greater than two-thirds of its revenue from international markets.

TPG declined to comment. Eruditus didn’t reply to a request for comment outside of business hours.

A possible $150 million investment in an edtech company could revive a sector that has struggled since schools reopened after the pandemic. Many edtech firms have faced devaluation or closure as their growth stalled with the return to in-person learning.

The Indian edtech market can be reeling from the sudden demise of $22 billion startup Byju’s. The Bengaluru-based startup is embroiled in lawsuits and governance challenges, and is facing bankruptcy proceedings.