Edtech firm Eruditus nears $450-mn SoftBank-led funding, valued at $3.2 bn

Indian education technology startup Eruditus is close to raising more than $450 million from investors led by SoftBank Group Corp. and Accel Partners, according to people familiar with the matter.

The latest round values the startup at about $3.2 billion and an announcement could come as soon as this week, the people said, asking not to be named as the information isn’t public. Some existing shareholders are also offloading about $200 million stake, the people added.

While talks are advanced, they could still be delayed or fall apart, the people said. A representative for SoftBank offered no comment, while representatives for Eruditus and Accel didn’t immediately respond to emails seeking comments.

India’s education startups are riding a surge in demand during the pandemic that’s buoyed Byju’s, the most valuable edtech company in the nation, and its smaller rivals. Global investors are stepping up their bets on the sector in the South Asian country after China reined in the segment in its local market.

–With assistance from Saritha Rai and Anto Antony.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor