Home Business EdTech Vedantu raises $11M to boost A...

Vedantu raises $11M to boost AI-driven hybrid learning expansion

EdTech

BusinessHonor - Vedantu Raises $11M for AI Learning

Business Honor
01 October, 2025

Accel-backed Vedantu plans growth, IPO amid changing EdTech market conditions.

Vedantu, the online tutoring giant backed by Accel, has raised $11 million in a convertible equity round led by existing backers ABC World Asia, Accel India, and Omidyar Network India. This new funding, part of a larger capital raise, will propel Vedantu's growth plans, featuring both organic and inorganic expansions, as well as investments in AI, adaptive learning technologies, and customized content to enhance learning outcomes for students. The most recent investment occurs just as the EdTech space is dealing with a change in market conditions, as many firms are resetting their valuations following the pandemic-induced funding surge. Convertible equity—a financing instrument that lets investors put off valuation until a future round or IPO—has been gaining traction for startups struggling with the new financial realities.

Vedantu, which turned unicorn in September 2021 after a Series E funding of $100 million, will utilize the money to further establish itself as a market leader in the EdTech segment. Along with its digital presence, the company has also been increasing its offline reach through more than 100 hybrid learning centers and franchise associations. The expansion comes after taking over the offline platform Deeksha, enabling Vedantu to provide a hybrid test-prep platform, integrating online tutoring with conventional classroom teaching. Vedantu's growth path looks promising, with all-time collections in the first quarter of FY25, up 67% year over year. Revenue for FY25 is anticipated to exceed ₹284 crore, a 55% rise compared to the corresponding period last year. The company has also worked on diminishing cash burn, recording a 30% decline in losses. In the future, Vedantu is planning an IPO of $150–200 million between 2027 and 2028, further fueling its global EdTech growth plans.