Saturday, October 1, 2022
HomeInsightFunding Alert Edtech Startup Eruditus raises $350 mn funding from CPPIB for M&As

[Funding alert] Edtech Startup Eruditus raises $350 mn funding from CPPIB for M&As

 Eruditus
Edtech Startup Eruditus

Executive education focused startup Eruditus has get $350 million debt financing from Canada Pension Plan Investment Board (CPPIB) to largely fund its aggressive acquisition plans in its overseas markets.

The company expects total bookings of around $200 million through the inorganic route in the next fiscal. Damera, while not disclosing the name of the company, said that Eruditus is already in the final stages of closing a $250 million acquisition in Europe for a company that offers largely online certificate courses to non-English speakers.

Ashwin Damera said that these funds will be useful to succeed in their aggressive acquisition plans in their overseas markets at large.

Damera said the loan from CPPIB, which is routed through subsidiary CPPIB Credit Investment Inc,is a five-year credit with bullet payment of the amount at the end of the tenure, with no interest to be paid. “We anticipate around $700-750 million in gross bookings for the next fiscal year and inorganic stakes will play a significant role in terms of contribution,” he added. The company had gross bookings of approximately $17.5 million in fiscal year 2021.

Edtech Startup Eruditus started in 2010 by Ashwin Damera, an online education startup which makes courses from Ivy league Universities accessible and consumable.

Damera also says the edtech company is in talks for a strategic acquisition and plans to spend up to $1 billion. The debt capital will be used for two major acquisitions in Europe and the US.The company plans to increase its gross annual bookings by 90% to approximately $950 million in fiscal year 2023, compared to an estimated $500 million in this fiscal year ending March 31.

Damera also said that the company would also consider raising equity capital following this debt financing in the second half of 2022, which could be anywhere between $200 million and $300 million. Further details are yet to be finalised. Our acquisition pipeline will enable us to accelerate growth, impact more learners and improve our profitability. [According to The Economic Times]

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

- Advertisment -

Also Read

- Advertisment -
Newsletter

Subscribe to our weekly newsletter and don't forget to check out the latest updates.