Eruditus, an Indian edtech start-up, is reportedly nearing a substantial investment deal with TPG, a prominent private equity firm. According to TechCrunch, TPG is in the final stages of negotiations to lead a $150 million funding round for Eruditus, which could become one of the most significant fundraising efforts by an Indian education company in recent years.

This new funding round is expected to value Eruditus at up to $2.3 billion, depending on the start-up’s ability to meet specific performance benchmarks. If these targets are not achieved, the valuation could drop to a minimum of $1.8 billion. This marks a decline from Eruditus’s previous valuation of $3.2 billion during its last funding round in August 2021.

Founded 14 years ago, Eruditus collaborates with leading global universities to offer executive education programs, with more than two-thirds of its revenue coming from international markets. Initial talks for the funding began last year, focusing on a $50 million secondary round to allow early investors to exit. However, after achieving a full year of EBITDA profitability, Eruditus opted to pursue a larger round, aiming to finalize it before moving its headquarters from Singapore to India.

The anticipated $150 million round would be Eruditus’s first major equity raise since August 2021. In the meantime, the SoftBank-backed company secured $350 million in debt from the Canada Pension Plan Investment Board (CPPIB) in 2022 to support mergers and acquisitions and strengthen its market position. Looking forward, Eruditus plans to relocate its headquarters from Singapore to India within the next 12-18 months, marking a strategic shift in its expansion efforts.