Mumbai-headquartered Emeritus subsidiary of Eruditus secured $350 million in debt financing round from Canada Pension Plan Investment Board (CPP Investments) . The company said the funding will be used by Emeritus to fuel mergers and acquisitions as part of a strong global growth strategy. After OYO, Ola and Byju’s, Eruditus is the fourth major start-up to have raised a significant portion of funds through debt financing.
As remote learning continues to thrive coming out of the pandemic, Emeritus is growing and innovating to meet market demand. With an annual growth rate of 120%, Emeritus estimates gross bookings at $500 million for the fiscal year. As the company continues to grow 2.5x organically, Emeritus will also accelerate growth through inorganic initiatives. The pipeline of potential acquisitions is expected to contribute up to 30% of Emeritus’ revenue and EBITDA over the next five years, the company said.
The edtech company said that after the debt financing is completed, Emeritus will have raised more than $1 billion in debt and equity. CPP Investments also participated in Emeritus’ $650 million funding round in August 2021, which increased Emeritus’ valuation to $3.2 billion, quadrupling its Series D valuation from August 2020 Investors in Emeritus also include Accel, Softbank Vision Fund 2, GSV, the Chan Zuckerberg Initiative, Leeds Illuminate and Prosus, as well as Sequoia Capital India and Bertelsmann and Chimera.
“Emeritus will expand our mission to make education accessible globally by deepening our investment in the education space to reach different segments and audiences,” said Ashwin Damera, Co-Founder and CEO, Emeritus and Eruditus. “Our acquisition pipeline will allow us to accelerate growth, impact more learners and improve our profitability,” he added.
“The investment in Emeritus demonstrates our continued commitment to supporting industry leaders in India, one of our key markets in Asia-Pacific,” said Raymond Chan, Managing Director, Head of APAC Credit, CPP Investments. “The investment is also aligned with our strategy of pursuing high-quality credit investments across Asia-Pacific and delivering attractive risk-adjusted returns for our contributors and beneficiaries,” Chan added.
In FY21, Emeritus claimed to have reached learners in more than 80 countries and delivered programs through partnerships with more than 50 of the world’s top universities. In 2021, Emeritus acquired Silicon Valley-based iD Tech, the global leader in STEM education for young people, marking Emeritus’ expansion into the K12 space.