Eruditus locks in major refinancing as it pushes for profitable growth
The Mumbai-based edtech’s $150 million refinancing with MARS Growth Capital and HSBC comes less than a year after it raised the same amount in equity.
Edtech firm Eruditus has completed a refinancing deal worth up to $150 million. The arrangement is led by MARS Growth Capital, a joint venture between Liquidity and MUFG Bank of Japan, together with HSBC.
The new facility consists of $130 million in immediate refinancing and a further $20 million available as a scale-up option. MARS Growth Capital will provide up to $100 million, while HSBC will provide up to $50 million.
“This refinancing reinforces our long-term growth strategy, giving us the financial flexibility to accelerate profitable expansion across international markets,” said Ashwin Damera, chief executive and co-founder of Emeritus and Eruditus.
This development comes less than a year after Eruditus raised $150 million in equity. That round was led by TPG’s Rise Fund with support from existing backers such as SoftBank, Accel, Leeds Illuminate, CPP Investments, and the Chan Zuckerberg Initiative.
The equity raise gave Eruditus resources to pursue acquisitions in sectors including enterprise learning and study abroad programmes, as well as to expand its offerings in undergraduate and postgraduate degrees.
The refinancing is different in nature. It is not a new fundraise that brings additional investors into the business, nor does it change the company’s valuation. Instead, it replaces existing debt with new terms and provides additional flexibility.
“By backing their expansion with flexible refinancing, we are helping Eruditus scale its impact globally while ensuring access to world-class education for the next generation of professionals,” said Bradly Reiner, director of HSBC Innovation Banking.
Eruditus reported steady revenue growth in FY 2023-24 while sharply reducing its EBITDA losses.
Revenue for the Mumbai-based firm rose 12.4% year-on-year to Rs 3,733 crore in FY24. EBITDA loss, excluding one-time provisions and non-cash expenses, narrowed to Rs 69 crore in FY24, compared with Rs 417 crore in FY23, an improvement of 83.5%.
Earlier this year, Damera told YourStory that the company is on an ambitious path, aiming to exceed $1 billion in revenue within the next five years.
Founded by Damera and Chaitanya Kalipatnapu in 2010, Eruditus offers executive-level courses from top universities. It partners with more than 80 universities worldwide, including Harvard, MIT, INSEAD, Cambridge and Wharton.