Edtech startup Vedantu has secured $11 million from its existing investors, including ABC World Asia, Accel India and Omidyar Network India, in a convertible equity round. The company confirmed the development on Friday, adding that the fresh funding is part of a larger ongoing raise.
Vedantu said the capital will be used for category expansion, both organic and inorganic, and to strengthen technology, AI and adaptive content aimed at enhancing personalisation and learning outcomes.
Earlier this year, it was reported that Vedantu was in discussions to raise $10 to $15 million from existing investors through a convertible structure to support its balance sheet and prepare for a possible public listing. The funding comes at a time when new investments in edtech have slowed as companies struggle to align past valuation benchmarks with current market conditions.
Convertible equity enables investors to defer valuation until a priced round or an IPO, a format that has become more common as startups address valuation mismatches after the pandemic funding boom.
The company also said it is in advanced talks with external investors for additional funding and a secondary share sale that could provide exits to some early backers, including Chinese and legacy shareholders. Reports earlier indicated that Vedantu, along with firms such as Udaan and Pocket FM, is exploring exit options for Chinese investors after industry appeals to ease restrictions failed to bring policy changes.
Founded in 2011, Vedantu entered the unicorn club in September 2021 with a $100 million Series E funding led by ABC World Asia. It has also raised venture debt from lenders such as Stride Ventures, Innoven Capital and Alteria Capital. The company is targeting a $150 to $200 million IPO between 2027 and 2028 to raise growth capital and provide exits to early investors.
Vedantu reported its first profitable quarter in Q4 FY25 with ₹90 crore in collections, marking a 67 percent year-on-year rise and generating more than ₹6 crore in free cash flow. Collections for the April to June 2025 quarter reached ₹110 crore, keeping cash flow positive for six months in a row. For FY25, collections grew 55 percent to ₹284 crore while cash burn was reduced by 30 percent.
The company has been expanding its offline presence through its acquisition of Deeksha, now operating over 100 hybrid centres and onboarding franchise partners. In FY24, Vedantu posted revenue of about ₹184 crore and reduced losses by 58 percent to ₹157 crore.
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