Online education technology startup Eruditus has raised $113 million in its Series D round of funding. The funding round was led by The Chan Zuckerberg Initiative (CZI), a non-profit headed by Facebook CEO Mark Zuckerberg and his wife Priscilla Chan. Prosus Ventures and Leeds Illuminate Global Fund also joined as new investors.
“Education technology is a major focus for Prosus Ventures, and we now have six ed-tech portfolio companies spanning education across K-12, vocational upskilling, lifelong learning, and now higher education with the inclusion of Eruditus,” said Ashutosh Sharma, head of investments for India at Prosus.
Earlier, it was reported that CZI was looking to invest in Eruditus at an evaluation of $800-$850 million. According to a statement by Eruditus, this was the first funding by Leeds Illuminate Global Fund in an Indian company. Prosus already has investments in edtech unicorn BYJU’S and online food delivery platform Swiggy. CZI has an investment in BYJU’S too.
Its existing investor Sequoia Capital and Ved Capitalparticipated in the round as well. Sequoia Capital too has invested in BYJU’S.
Founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera, Eruditus offers management programmes and short courses remotely. It has tie-ups with foreign universities, including Columbia University, Massachusetts Institute of Technology and Harvard Business School. It also has tie-ups with Indian institutes like IIM, XLRI among others.
Is edtech the future?
Online education has seen a massive boost since the Covid-19 pandemic. Edtech companies have been the favorite among the investors. The fear of coronavirus has seen schools, institutes and professionals adopting online education. The pandemic has also given an opportunity to people to change professions and online education has been of big help. Access to any course or module has seen a lot of takers and learn new skills to upgrade or switch their professional career.
BYJU’S recently acquired coding platform WhiteHat Jr. in one of the best deals for a startup. Edtech startup Toppr also raised Rs 350 crore in a Series D funding round. Unacademy also raised $110 million from Facebook and General Atlantic in February this year. Even Eduvanz, a fintech that provides loan to students, has raised $5.5 million. Recently, LEAD School also raised $28 million in a Series C funding round.In July, Vedantu Innovation Pvt. Ltd raised $100 million in a Series D funding round led by US-based investment firm Coatue Management.