Eruditus, an edtech firm has received $350 million debt financing from Canada Pension Plan Investment Board (CPPIB) to financially support its aggressive acquisition plans in its overseas markets. The startup has been in talks for strategic acquisitions and decided to spend as much as $1 billion for the same. The debt fund will be used for two key acquisitions in the US and Europe, with an aim to increase it gross annual booking by 90 percent to $950 million in fiscal 2023, as against an estimated $500 million in this fiscal year ending March 31.
For the next financial year, $200 million of gross bookings are expected through the inorganic route. The edtech firm is said to be in the final stages of closing a $250 million acquisition in Europe, of an organization offering online certificate courses to non-English speakers.
The debt is routed through subsidiary CPPIB Credit Investments Inc is a 5 year credit with a bullet payment of the amount at the end of the tenure. Ashwin Damera, cofounder, Eruditus said that we are projecting about $700-750 million in gross bookings for next financial year and inorganic bets will play an vital role in terms of contribution.
