New Delhi, Sept. 26 -- Edtech unicorn Vedantu has raised $11 million (around Rs 97.5 crore) from its internal investors as part of an ongoing larger funding exercise. The round was led by Singapore-headquartered private-equity fund ABC World Asia with participation from Accel India and Omidyar Network.
Vedantu said that as part of its broader capital strategy, it has also been in advanced discussions with potential external investors for additional capital infusion and a significant secondary component.
The secondary deal aims to clean up Vedantu's cap table by offering exits to early backers, including Chinese and legacy investors.VCCircle had exclusively reported earlier this year that the company was in talks with investors to raise fresh capital.
Vedantu had last raised $100 million (about Rs 740 crore then) nearly four years ago in a Series E round that propelled it into the unicorn league. Since then, it has secured debt from a couple of venture debt firms such as Alteria Capital and Stride Ventures.
Meanwhile, the company plans to use the new capital for new category expansion, including both organic and inorganic opportunities. It will also invest the funds in technology, AI, and adaptive content to improve personalization and learning outcomes.
"Over the last 18 months, we've demonstrated disciplined growth and a clear path to profitability," said Vamsi Krishna, co-founder and chief executive officer, Vedantu.
"The upcoming external round and secondary process will further strengthen our balance sheet, align our shareholder base, and set us up for a potential public market listing in calendar year 2027."
Vedantu claimed that it recently delivered its first profitable quarter in Q4FY25, registering Rs 90 crore in collections, a 67% year-on-year growth, and generating more than Rs 6 crore in free cash flow.
It also claims that with Rs 110 crore collections in Q2FY25, it has been cashflow positive for six months now. In the financial year through March 2025, total collections grew ~55% to ~Rs 284 crore, while cash burn was reduced by 30%.
In parallel, Vedantu has expanded its offline footprint. It now operates 100+ hybrid centres and is actively onboarding franchise partners.
Looking ahead, Vedantu is targeting incremental expansion in its current categories: K10 and Test preparation, and expanding to newer categories.
It claims that each month, over 10 million users access Vedantu through its app and web for free. It has over 1,200 teachers and caters to over 2,00,000 paid students.
Published by HT Digital Content Services with permission from VC Circle.