Vedantu, an edtech unicorn based in Bengaluru, India, has raised $11 million in a recent funding round. The funding round showcases Vedantu’s impressive growth journey and a target to go public by 2027. The funding round was led by ABC World Asia, an impact investment fund that is backed by Temasek, as well as existing investors Accel India and Omidyar Network. This signifies Vedantu’s first sizable round of fundraising since 2022, while most recently focused on establishing a solid operating and financial framework for an initial public offering.
Funding to Accelerate Expansion and Innovation
The fresh capital will be primarily used to support the company’s expansion across new educational segments, both organically and through strategic acquisitions. The company plans to invest in advanced technologies, including artificial intelligence, adaptive content, and learning analytics, to enhance personalized learning experiences for students.
Additionally, a portion of the funding will be utilized to streamline Vedantu’s capital structure and reduce liabilities ahead of its anticipated IPO. The startup is also exploring raising an additional $20-25 million over the next six months. This will include $5-10 million in primary capital for expansion and $12-15 million in secondary capital aimed at providing exits for early investors, including those from China.
Strong Financial Performance and Profitability Milestone
Vedantu has notably improved its financial performance. In the fourth quarter of FY 2025, the company reported its first profitable quarter with collections of ₹90 crore, a year-on-year growth of 67%. For the year, Vedantu’s total collections increased 55% to ₹284 crore and cash burn was reduced by nearly 30% showing more operational efficiency.
The edtech startup has achieved cash-flow positivity, a critical milestone that not only strengthens investor confidence but also sets the stage for a successful public listing. Maintaining profitability and steady revenue growth is central to Vedantu’s strategy for the upcoming IPO.
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Expanding Reach Across Online and Offline Channels
Vedantu has aggressively expanded its footprint online and offline. The company has over 100 hybrid learning centers in India and over 200,000 paying students. The platform has over 10 million monthly users and its Youtube channel has over 1 billion annual views, making it the second most-viewed K-12 educational channel in India.
In order to bolster its offline presence, Vedantu has been signing franchise partners in several important cities, including Ahmedabad, Bangalore, Jaipur, Lucknow, Nagpur and Surat. The aim is to grow to more than 100 hybrid learning centers by mid-2026. The mix of online scale and offline presence enables students to access high-quality learning options with greater flexibility and is instrumental in cementing Vedantu’s brand in a competitive Indian edtech landscape.
Founders’ Vision and Mission
Vedantu was co-founded by Vamsi Krishna, Pulkit Jain, Saurabh Saxena, and Anand Prakash to facilitate outstanding learning opportunities for students in India. The founders hoped to use interactive online learning to offer education to regions that provide little access to education. According to Krishna, Vedantu’s mission has always been to combine technology with a personalized learning experience that adapts to each student’s pace and understanding, making education more engaging and effective.
Positioning Vedantu in the Competitive Edtech Market
The funding comes at a time when the Indian edtech sector is consolidating after rapid growth during the pandemic. Vedantu’s focus on hybrid learning, combining online classes with physical centers, positions it well to cater to evolving student needs. The startup’s emphasis on live interactive classes, AI-enabled learning tools, and adaptive content modules differentiates it from competitors and enhances student engagement and learning outcomes.
Preparing for a Public Listing
Vedantu’s leadership is positive about the company’s future. They want to go public in 2027 at ₹500 crore in revenue and profit. There will be significant investor interest in public markets given Vedantu’s performance to date, its growth strategy, and the technology-led learning model it has developed.
As Vedantu scales, the startup hopes to be the company that is a game-changer in online education in India and further cement its position as a leader in K–12 edtech, with a growing hybrid presence, revenue growth, and financial backing to continue innovating while expanding internationally in the years ahead.
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