Bengaluru-based edtech startup Vedantu has raised $11 million through convertible notes, in a round led by ABC World Asia, an impact investment fund backed by Temasek. Existing investors, Accel India and Omidyar Network, also participated. The funding is reportedly part of a broader process involving discussions with new investors for additional capital and a secondary sale to provide exits to some early shareholders, including Chinese investors.
A convertible note is a short-term debt instrument that converts into equity at a later date, typically during a future funding round or an IPO.
The startup plans to deploy the fresh capital to expand its presence across new categories, both organically and through acquisitions, while boosting investments in technology, AI, and adaptive content. Vedantu has previously pursued strategic acquisitions, most notably acquiring test-prep firm Deeksha in late 2022 for $40 million through a cash-and-stock deal.
Founded in 2011 by Krishna, Anand Prakash, Saurabh Saxena, and Pulkit Jain, Vedantu became a unicorn in September 2021, raising $100 million in a round also led by ABC World Asia. Today, the company operates more than 100 hybrid centres, employs over 1,200 teachers, and serves more than two lakh paying students.
Vedantu has demonstrated significant improvement in financial performance. The company ended FY25 with collections of Rs 284 crore, up 55% from the previous year, while reducing cash burn by 30% to Rs 70 crore. It turned profitable in the March 2025 quarter with Rs 90 crore in collections and posted Rs 110 crore in the following April–June quarter, with cash flow turning positive by Rs 6 crore. In FY24, Vedantu reported operating revenue of Rs 185 crore, reducing losses by 58% to Rs 157 crore.
Currently, Vedantu’s annual revenue run rate stands at Rs 400–430 crore, and the company has set a long-term target of achieving Rs 700–800 crore in topline with Rs 80–100 crore in profits.
With this latest infusion, Vedantu aims to strengthen its edtech ecosystem, scale its AI-powered offerings, and accelerate growth in both existing and new educational categories, reinforcing its position as a leading player in India’s online and hybrid learning sector.
