A convertible note is a form of short-term debt that converts into equity, typically during a future financing round, or an IPO. Vedantu raised the debt as part of an ongoing, larger funding round. The company plans to deploy the funds for organic and inorganic expansions besides technology, artificial intelligence, and adaptive content.
Vedantu is also in advanced talks with new investors to raise fresh capital, including a secondary sale to provide an exit to some of its early investors. “The upcoming external round and secondary process will further strengthen our balance sheet, align our shareholder base, and set us up for a potential public market listing in calendar year 2027,” said cofounder and chief executive Vamsi Krishna.
The fundraising tracks a revival in India’s edtech sector in the first half of 2025. In the January-June period, the sector raised $120 million through 11 deals, sharply rising from $22 million across seven deals a year earlier, according to data from private company tracker Venture Intelligence. It however lagged the $230 million raised in the first half of 2023.
Founded in 2011 by Krishna, Anand Prakash, Saurabh Saxena, and Pulkit Jain, K12 edtech firm Vedantu became a unicorn in September 2021, when it raised $100 million in a funding round led by ABC World Asia. It has over 1,200 teachers and caters to over 2,00,000 paid students.
Initially launched as an online education platform, the startup has since expanded and operates more than 100 hybrid centres.
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