Online executive education courses provider Eruditus, which today announced $40 million funding round led by Sequoia India, is expecting to enter the hallowed unicorn club with a billion dollar valuation over next 12 months, its co-founder and director Ashwin Damera told FE Online.
In March 2017, we had $10-12 million in revenue when we raised our series B round of $8 million. With that capital we have scale significantly and will be closing our fiscal year (June-July) with 10x growth to around $100 million in revenue, said Damera. With the new round, we are hoping to grow by up to 7x. We are already having a post-money valuation of $410 million and so we will certainly turn unicorn in 12 months from now.
If you compare companies in the similar space such as Udacity and Coursera, they have similar revenue figures as ours. While Udacity has $70-80 million in revenue, Coursera is $140-million strong. So in 12 months, we will be significantly higher than both of them, said Damera. Udacity is currently valued at $1 billion while Coursera with around $800 million valuation is having a near-unicorn status.
Eruditus achieved break even in the October-December quarter and is now looking to grow in China and Brazil which are its target markets. We want to offer courses in the local language. The target population in China, Brazil and Spanish-speaking markets would be around 2 billion which is a great opportunity for us, said Damera.
From the product perspective, Eruditus will offer online degrees as well. The startup so far, working with universities such as MIT, Columbia, Harvard Business School etc., have been offering their certificate courses available online.
Driven both by individual learners investing in their own professional development and by corporations investing in the development of their employees, the massive challenge of reskilling in response to technology evolution is throwing open a multi-billion-dollar opportunity for education entrepreneurs , said GV Ravishankar, managing director, Sequoia India.
Currently, 30% of students on Eruditus come from the US, 22 from Europe, around 14% from India, around 12% from Latin America and rest from other geographies.
The startup has 50 courses across 5 categories with the monthly average number of 2,000 students on the platform.