Vedantu, the edtech unicorn, has secured Rs 19.25 crore (approximately $2.3 million) in debt and equity from Stride Ventures. This marks the first funding round for the Bengaluru-based company since it raised $100 million, valued at around $1.1 billion.
According to filings from the Registrar of Companies, the company raised Rs 19.25 crore through Stride Ventures Debt Fund II. The company’s board approved a resolution to issue 1,750 non-convertible debentures to secure Rs 17.5 crore and Rs 1.75 crore in equity.
Although this funding is modest, it will help extend the firm’s runway as the company faces challenging times like many other edtechs. As of March 2023, Vedantu had Rs 299 crore in net current assets, including Rs 39 crore in cash and bank balances, according to TheKredible.
Vedantu isn’t alone in its struggles. Other edtech firms like Unacademy, Byju’s, and Cuemath have also faced difficulties raising funds over the past few years.
In addition, Vedantu plans to fully acquire Ahmedabad-based Pedagogy by purchasing the remaining 9.32% stake in a share swap deal. As part of this deal, Vedantu will issue 87,198 equity shares worth Rs 1.53 crore to Pedagogy’s co-founders, Archin Shah and Ritesh Gandhi. Vedantu initially acquired a stake in Pedagogy in July 2021, as exclusively reported by Entrackr.
Pedagogy offers access to popular books and digital courses from trusted publishers and coaching centers across India, focusing on exams like JEE, NEET, NET, and CTET.
Like other edtech companies, Vedantu has expanded into offline learning by partnering with Vignan Institute. Together, they have launched six learning centers for higher secondary schools in Andhra Pradesh and Telangana.
Although the company has not yet released its FY24 financials, the Edtech firm’s revenue from operations decreased by 7.8% to Rs 153 crore in FY23. However, it successfully reduced its losses by 46.4% to Rs 373 crore, according to startup data intelligence platform TheKredible.
