Vedantu Secures USD 11 Mn in Fresh Funding, Eyes IPO in 2027 According to people familiar with the matter, Vedantu is exploring the possibility of raising an additional USD 20 to 25 million over the next five to six months.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Edtech firm Vedantu has raised USD 11 million in primary capital from its existing investors through convertible notes. The round was led by ABC World Asia, with participation from Accel and Omidyar Network, as part of a larger funding process still underway.
Co-founder and Chief Executive Officer Vamsi Krishna said the company is also in talks to bring in external investors. "The plan is to carry out most of this through a secondary transaction, which would allow us to provide exits to the Chinese investors and a few others. The process is currently underway," he told YourStory.
According to people familiar with the matter, Vedantu is exploring the possibility of raising an additional USD 20 to 25 million over the next five to six months. This would include USD 5 to 10 million in primary capital and USD 12 to 15 million in secondary capital. Commitments worth about USD 7 to 8 million from existing investors are already in place, one person said.
The latest primary infusion will support Vedantu's expansion into new categories, both organically and through acquisitions, alongside investments in technology and artificial intelligence to enhance personalised learning.
Reflecting on its previous acquisition, Krishna noted, "Our interest is driven by our positive experience with the acquisition of Deeksha, which contributed not only to our top line but also to a profitable bottom line. Based on this experience, we are open to exploring similar opportunities, both offline and online, within the K–12 education space."
Vedantu bought test-prep company Deeksha in late 2022 for USD 40 million in a cash-and-stock deal. In the January to March quarter of 2025, it reported cash-flow positivity of INR 6 crore. Collections of INR 110 crore in the April to June quarter further strengthened that position, with indications that the firm will remain cash-flow positive for the ongoing financial year.
Krishna highlighted that the company is on track for long-term growth. "Over the last 18 months, we have demonstrated disciplined growth and a clear path to profitability. 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 CY 2027," he said.
Vedantu aims to reach a top-line run rate of INR 700 to 800 crore with profits of INR 80 to 100 crore. Its current run rate stands at INR 400 to 430 crore.
As sector peers such as PhysicsWallah move closer to a INR 3,820 crore listing, Vedantu's progress will be watched closely by investors tracking the future of India's edtech industry.
