Despite the company not yet officially filing its 2022-23 results, the prospects seem optimistic as Eruditus prepares for a fundraising round, potentially worth $150 million. The funds will be garnered through primary and secondary share sales, possibly significantly elevating the company’s valuation amidst a global decrease in edtech valuations.
Eruditus, a SoftBank-backed edtech platform, is making noteworthy strides in its financial performance as the fiscal year 2022-23 concludes, according to a Money Control report.
Despite global difficulties faced by the edtech sector, the platform managed to reduce losses by nearly 40 percent and record a significant revenue jump of over 60 percent, the report added.
The company’s revenues swelled from approximately $245 million a year prior to $400 million in 2022-23, revealed Ashwin Damera, Eruditus’ co-founder and CEO. Losses, sans certain costs such as depreciation and ESOP, contracted to about $40 million from $66 million in 2021-22. In an impressive quarter performance (April-June 2022), the company also managed a small pro-forma EBITDA of roughly $3 million, forecasting a larger $40 million EBITDA for FY24, the report revealed.
The platform earns most of its revenues abroad while keeping the majority of its expenses within India’s comparatively lower-cost boundaries, facilitating robust gross margins of 50 to 60 percent.
“One big area of focus for us is our enterprise offering (business-to-business). It is about 10 percent of our business, but the fastest-growing segment. In the next 12 months, we expect it to grow about 70-80 percent,” Damera said.
Despite the company not yet officially filing its 2022-23 results, the prospects seem optimistic as Eruditus prepares for a fundraising round, potentially worth $150 million. The funds will be garnered through primary and secondary share sales, possibly significantly elevating the company’s valuation amidst a global decrease in edtech valuations.
Founded in 2010, Eruditus provides programs for working professionals and is supported by several major investors, including SoftBank, Prosus, Sequoia, and the Chan Zuckerberg Initiative. The company has raised over $814 million in equity funding so far, with its largest round worth $650 million in August 2021.
Damera disclosed ambitious plans for the company’s future, including focusing on its enterprise offering and venturing deeper into the healthcare segment. He also highlighted Eruditus’s aim to grow sustainably by mainly following organic growth strategies.
Despite challenges faced by the edtech industry and some operational adjustments, Eruditus has managed to prevent mass layoffs and maintain growth. Its considerable revenue forecasts and strong performance position it as one of the globally significant players in the upskilling and higher education segment.
