Summary:
- Edtech unicorn raises $11M via convertible notes
- ABC World Asia leads; Accel India & Omidyar Network join in
- Vedantu posts 55% FY25 growth, turns profitable in Q1 FY26
Vedantu Bags $11M Amid Funding Winter
Bengaluru-based edtech unicorn Vedantu has secured $11 million (₹92 Cr) in a fresh round led by ABC World Asia, with participation from existing backers Accel India and Omidyar Network. The capital was raised through convertible notes, offering the company flexibility as it eyes secondary sales to provide exits to early investors, including its Chinese backers.
The raise highlights a rare but significant edtech funding move in 2025, when most players continue to struggle under tightened capital flows.
Fueling Expansion With Hybrid & AI Bets
Vedantu plans to deploy the funds to expand its hybrid centres, scale into new learning categories, and deepen AI-driven adaptive learning tech.
The unicorn has been building aggressively post its $40M acquisition of Deeksha in 2022 to strengthen test-prep offerings. Today, it operates 100+ hybrid learning centres, employs over 1,200 teachers, and serves 200,000+ paying students across India.
Co-founder & CEO Vamsi Krishna said the focus is clear: “We’re building a sustainable, profitable edtech model while scaling quality education access.”
Financials Signal A Turnaround
Founded in 2011 by Vamsi Krishna, Anand Prakash, Saurabh Saxena, and Pulkit Jain, Vedantu became a unicorn in 2021 after a $100M round. Now, the company is showing signs of strong revival:
- FY25 Collections: ₹284 Cr, up 55% YoY
- Cash Burn: Reduced 30% to ₹70 Cr
- Profitability: Turned profitable in March 2025 quarter with ₹90 Cr collections
- Q1 FY26: ₹110 Cr in collections, ₹6 Cr positive cash flow
Vedantu’s annual revenue run rate now stands at ₹400–430 Cr, with a target to hit ₹700–800 Cr topline and ₹80–100 Cr profit in the coming years.
