Edtech unicorn Vedantu has secured Rs 19.25 crore ($2.3 million) in a mix of debt and equity funding from Stride Ventures. This marks the first capital infusion for the Bengaluru-based company since its $100 million funding round that propelled its valuation to $1.1 billion. The fresh funds are expected to provide Vedantu with an extended financial runway as it navigates the challenges currently facing the edtech sector.
According to regulatory filings with the Registrar of Companies, Vedantu raised Rs 19.25 crore from Stride Ventures Debt Fund II. Of this, Rs 17.5 crore was secured through the issuance of 1,750 non-convertible debentures, while Rs 1.75 crore was raised in equity.
Although the amount raised is relatively modest, it comes at a critical time for Vedantu, as well as other major edtech companies like Unacademy, Byju’s, and Cuemath, all of which have struggled to secure significant funding in the past two years. The slowdown in capital influx has posed challenges for many firms in the sector as they seek ways to remain competitive and sustain growth.
In addition to securing new funds, Vedantu has completed the acquisition of Ahmedabad-based Pedagogy, by purchasing the remaining 9.32% stake in the company. This acquisition was finalized through a share swap deal in which Vedantu issued 87,198 equity shares valued at Rs 1.53 crore to Pedagogy co-founders Archin Shah and Ritesh Gandhi. Pedagogy is an edtech platform that provides access to popular books and digital courses for competitive exams like JEE, NEET, NET, and CTET.
Vedantu has also made strides in expanding its offline presence. The company partnered with Vignan Institute to launch six learning centers in Andhra Pradesh and Telangana, focusing on higher secondary school students.
Financially, Vedantu has seen a slight dip in performance. Revenue from operations declined by 7.8% to Rs 153 crore in FY23, though the company managed to reduce its losses by 46.4%, bringing them down to Rs 373 crore, according to data from TheKredible.
The combination of fundraising, strategic acquisition, and offline expansion suggests that Vedantu is positioning itself to stay resilient in a challenging market.
