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Vedantu seeks $1B valuation in a new round

vedantu funding

Vedantu is in discussions to raise a new round from new and existing investors, said three people with knowledge of the details of the deal.

This would be the initial funding round for the Bengaluru-based company in 2021.

“Several new investors including Owl Ventures are in conversations to lead a $150 million new round in Vedantu,” said one of the people urging not to be named. “Existing investors including Coatue, Tiger Global, and Accel would also participate.”

The discussions, however, are at an early stage and no term sheet has been given yet.

A year ago, Vedantu had raised $100 million at a post-money valuation of over $500 million. Three co-founders had also sold out secondary shares during its Series D round in July 2020.

The company was in discussions with KKR to raise around $100 million. However, it looks like the discussions didn’t materialize. 

“Vedantu is seeking a valuation of $1 billion in the fresh round. However, investors are not keen to value it over $800 million,” said the second person who also requested anonymity as discussions are yet to be public. It is not clear if the company will be valued at $1 billion or not in this round. 

Vedantu’s chief offering includes online classes from grade 6 to 12 along with materials from grade 1 to 12 and JEE. The company also forayed into the kid’s coding space (age bracket 6-12) in May 2020.

The discussions have come at a time when many edtech companies like Unacademy are ready to rope in $450 million led by Temasek. Classplus is also in advanced talks to raise $25 million from Tiger Global whereas Eruditus is reportedly in discussions to raise a new round at a valuation of $2.5 billion.

Founded by Vamsi Krishna, Anand Prakash, Pulkit Jain, and Saurabh Saxena, Vedantu had registered an operating revenue of Rs 25 crore during FY20. While its revenue increased by 69% in FY20, the company’s expenses rose by 5.9X to Rs 196 crore.

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