Edtech company Vedantu has successfully secured $11 million in new funding from internal investors. This investment is part of a larger, ongoing funding round led by ABC World Asia, with contributions from Accel India and Omidyar. The funding round is structured as convertible and includes discussions about a secondary component aimed at offering exits to early investors, including both Chinese and legacy shareholders.
Vedantu plans to utilise the fresh funds for category expansion via both organic and inorganic opportunities, as well as investing in technology, artificial intelligence, and adaptive content to enhance personalisation and learning outcomes, according to a recent press release. This notable influx of capital arrives after a four-year hiatus for the Bengaluru-based company. In the previous year, it raised $2.3 million in debt and equity from Stride Ventures. Its significant $100 million unicorn funding round occurred back in September 2021.
Vamsi Krishna, co-founder and CEO of Vedantu, remarked that this internal funding round signifies strong confidence from investors as the company prepares for the next phase of Vedantu’s journey. He noted that in the past 18 months, the company has exhibited disciplined growth and a clear trajectory towards profitability. The upcoming external funding round and secondary process will further bolster the company’s balance sheet, align the shareholder base, and potentially position Vedantu for a public market listing in 2027.
As per Vedantu’s statements, the company became profitable in the last quarter of FY25, recording collections of Rs 90 crore, which marks a 67% increase year-on-year, and generating over Rs 6 crore in free cash flow. Between April and June 2025, collections reached Rs 110 crore, and Vedantu has maintained a positive cash flow for the last six months.
For FY25, total collections surged by 55% to 284 crore rupees, while cash burn was reduced by 30%. Although Vedantu has yet to officially file its FY25 results, it previously reported a loss of Rs 157 crore during FY24.
Furthermore, Vedantu has broadened its hybrid learning model by establishing over 100 offline centres and onboarding franchise partners. The platform caters to more than 200,000 paid students and boasts a network of 1,200 educators. Monthly, it attracts more than 10 million users, and its YouTube channel receives over one billion views annually, ranking second in India’s K12 sector.
This new funding comes during a period when edtech investments have significantly slowed. In 2025, startups in this space have only secured $130 million across 23 deals, with no transactions noted for August. Recently, the company Eruditus raised $150 million through a refinancing round led by Mars Growth Capital.
