Eruditus Secures $150M Debt Refinance for Global Growth

Eruditus, a leading India-based executive education startup, has refinanced US$130 million of its existing loans and secured an additional US$20 million credit line, bringing its total financing to US$150 million.

The funding was provided by Mars Growth Capital (up to $100M) and HSBC (up to $50M), with the debt facility extended for another four years. This deal reflects Eruditus’ debt-first financing strategy, which it has followed since 2021 when it raised $350 million from Canada Pension Plan Investment Board for acquisitions. Unlike many startups that depend heavily on equity funding, this approach allows Eruditus to avoid dilution after its October equity round, which held flat at a $3.2 billion valuation.

Key Highlights

• Eruditus refinances $130M debt, adds $20M credit line
• Debt-first strategy avoids equity dilution post $3.2B valuation
• EBITDA losses narrowed 83 percent, signaling path to profitability

The company aims to leverage its partnerships with 80+ universities and its 1 million+ learner base to generate predictable revenues, ensuring its ability to service debt while continuing global expansion.

Despite a slowdown in revenue growth to 12 percent in FY24, Eruditus significantly improved its unit economics, reducing EBITDA losses by 83 percent (from Rs.  417 crore to Rs. 69 crore). This signals a strategic pivot toward sustainable profitability and operational efficiency, aligning with broader EdTech market expectations to deliver viable, scalable business models.

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The refinancing provides Eruditus with ample runway to demonstrate profitable growth over the next four years, reducing dependence on future equity raises and enabling disciplined global expansion.