As part of a larger ongoing round led by ABC World Asia and including Accel India and Omidyar, the edtech company Vedantu has raised $11 million in new funding from internal investors.

Convertible in nature, the round also involves talks for a secondary component that would allow some early investors, including Chinese and legacy shareholders, to exit.

Key Highlights

• Vedantu secures $11 million from existing investors, including Accel, Omidyar Network, and ABC World Asia. 
• The funding round is structured as a convertible note, with discussions for a secondary component to provide exits for early investors.

In addition to investments in technology, artificial intelligence, and adaptive content to enhance personalization and learning outcomes, Vedantu stated in a press release that the new funds will be utilized for category expansion through both organic and inorganic opportunities.

The noteworthy investment follows a four-year lapse for the Bengaluru-based business. Stride Ventures contributed $2.3 million in debt and equity to it last year. 

As we get ready for the next phase of Vedantu's development, this internal round represents a resounding vote of confidence from our investors. We have shown steady growth and a clear route to profitability over the past 18 months. Vamsi Krishna, Vedantu's cofounder and CEO, stated, "The forthcoming 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."

Vedantu reports that it turned a profit in the fourth quarter of FY25, with collections of Rs 90 crore, a 67% year-over-year increase, and free cash flow of over Rs 6 crore. The company also stated that it has maintained a positive cash flow for the last six months and recorded collections of Rs 110 crore from April to June 2025.

While cash burn decreased by 30% for FY25, total collections increased by 55% to 284 crore rupees. Vedantu reported a loss of Rs 157 crore in FY24, but it has not yet submitted its FY25 results.

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Along with adding more than 100 offline locations and onboarding franchise partners, Vedantu has also broadened its hybrid learning approach. It employs 1,200 teachers and serves over two lakh paid students. Over 10 million people use its platform each month, and its YouTube channel receives over one billion views annually, ranking second in India's K12 market.

The new funding coincides with a notable slowdown in edtech investments. Startups in the sector have only raised $130 million in 23 deals so far in 2025, and there were no transactions in August. In a recent refinance round headed by Mars Growth Capital, Eruditus raised $150 million.