Eruditus raises $350 million in debt from CPPIB

Eruditus, an online education company, has raised $350 million in debt from the Canadian Pension Plan Investment Board, a global investment management firm, primarily to help facilitate mergers and acquisitions.

Eruditus plans to make acquisitions worth $1 billion in the next year. The company has gross bookings worth $500 million for FY22 and is growing 2.5 times year on year. The CPP Investment Board is also an existing equity investor in Eruditus and participated in a $650 million funding round last year, valued at $3.2 billion.

The CEO and co-founder, Ashwin Damera has said that the deal will expand its mission of educating accessible around the world by deepening its investment in the education space to reach different segments and audiences. The acquisition pipeline will enable the company to accelerate growth, impact more learners and improve profitability.

Eruditus acquired iD Tech, a coding, game development and short term courses company for kids in a $200 million cash deal in May 2022. Its other investors include Sequoia India, Accel, Prosus, SoftBank and the Chan Zuckerberg initiative.