Edtech startup Eruditus has announced that it has secured a $350 Mn debt financing deal from Canada Pension Plan Investment Board (CPPIB) to expand its merger & acquisition plans in global markets.
The startup, which develops executive education, would also look at raising equity capital after this debt financing in the second half of 2022, costing them between $200 Mn and $300 Mn.
Ashwin Damera, Co-founder & CEO, Emeritus and Eruditus said,“ Emeritus [Eruditus] will expand our mission of making education accessible around the world by deepening our investment in the education space to reach different segments and audiences. Our acquisition pipeline will enable us to accelerate growth, impact more learners, and improve our profitability."
The CPPIB investment is the latest move, part of a growing trend among some of the largest Indian startups that have opted for different kinds of debt financing routes for expansion.
Debt Funding, also known as debt financing or debt lending, is one of the many ways for a business to raise capital through means of borrowing. This type of funding needs to be repaid at a decided date later, usually through regular repayments with added interest.
As per the company statement, Eruditus plans to use the funds mainly for important acquisitions in the US and Europe.
The startup is backed by Accel US and Masayoshi Son-led SoftBank Vision Fund II and Chan Zuckerberg Initiative (CZI), a non-profit organisation headed by Facebook CEO Mark Zuckerberg and his wife Priscilla Chan.
Eruditus was founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera and formed their online division, Emeritus in 2014. With the capital infusion of last year, the company’s valuation quadrupled from $800 Mn to $3.2 Bn, making it the 22nd Unicorn of 2021.