Accel-backed edtech unicorn Vedantu raises $11 mn in internal round, larger secondary round to follow

Online tutoring firm Vedantu has raised $11 million from existing investors, including ABC World Asia, Accel India and Omidyar Network India, in a convertible equity round, the company said on Friday.

The fresh capital, part of a larger ongoing fundraise, will be deployed towards category expansion, both organic and inorganic, alongside investments in technology, AI and adaptive content to improve personalization and learning outcomes, Vedantu said.

Mint was the first to report in June that Vedantu was in talks to raise $10–15 million from its existing investors through a convertible round as it sought to strengthen its balance sheet and prepare for a potential public listing.

The funding comes at a time when fresh investments in edtech have slowed, with many companies struggling to reconcile 2020–21 valuation benchmarks with current market conditions.

Convertible equity allows investors to defer valuation until a priced round or IPO, a structure that has gained traction as startups navigate mismatched valuation expectations following the pandemic-era funding boom.

Vedantu also said in the statement that it is in advanced talks with external investors for additional capital as well as a secondary share sale aimed at providing exits to some early backers, including Chinese and legacy shareholders.

Mint also reported in July that Vedantu, among other startups like Udaan, and Pocket FM is looking to offer exits to their Chinese backers as the industry's appeal to ease restrictions on such investments has failed to secure a policy shift.

Founded in 2011, Vedantu became a unicorn in September 2021 after raising $100 million in a Series E round led by ABC World Asia. It has also regularly tapped venture debt from lenders such as Stride Ventures, Innoven Capital and Alteria Capital.

Vedantu is targeting a $150–200 million IPO between 2027 and 2028 to provide exits to early investors and raise growth capital, as reported by Mint earlier in March.

Vedantu, which acquired offline player Deeksha to build a hybrid test-preparation platform, reported its first profitable quarter in Q4 FY25, posting ₹90 crore in collections, a 67% year-on-year increase, along with more than ₹6 crore in free cash flow, it said.

The company has been expanding its offline presence alongside online tutoring, now operating over 100 hybrid centres and onboarding franchise partners.

Collections for the April–June 2025 quarter rose to ₹110 crore, keeping the company's cash flow positive for six consecutive months. For FY25 overall, Vedantu’s collections grew about 55% to ₹284 crore, while it cut cash burn by 30%, the company added.

The company has been on a path to profitability. In FY24, the company reported revenue of around ₹184 crore and reduced losses by 58% to ₹157 crore.