The round is structured as a convertible one and also includes discussions for a secondary component aimed at providing exits to some early investors including Chinese and legacy shareholders.
The new funds will be used for category expansion through both organic and inorganic opportunities along with investments in technology, artificial intelligence and adaptive content to improve personalization and learning outcomes, Vedantu said in a press release.
The notable funding comes after a gap of four years for the Bengaluru based company. Last year, it raised $2.3 million in debt and equity from Stride Ventures. Its $100 million unicorn round took place in September 2021.
“This internal round is a strong vote of confidence from our investors as we prepare for the next chapter of Vedantu’s journey. Over the last 18 months we have demonstrated disciplined growth and a clear path to profitability. The upcoming 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,” said Vamsi Krishna, cofounder and chief executive officer of Vedantu.
According to Vedantu, it turned profitable in the fourth quarter of FY25, posting collections of Rs 90 crore, a 67% year on year increase, and generating over Rs 6 crore in free cash flow. The company added that it recorded Rs 110 crore in collections during April to June 2025 and has remained cash flow positive for the past six months.
For FY25, total collections grew 55% to Rs 284 crore while cash burn was reduced by 30%. While Vedantu has not yet filed its FY25 results, it had reported a loss of Rs 157 crore in FY24.
Vedantu has also expanded its hybrid learning model with more than 100 offline centres and the onboarding of franchise partners. It serves more than two lakh paid students with a network of 1,200 teachers. Its platform attracts more than 10 million monthly users while its YouTube channel garners more than one billion annual views, the second highest in India’s K12 segment.
The new funding comes at a time when edtech investments have slowed significantly. In 2025 so far, startups in the space have secured only $130 million across 23 deals, with no transactions recorded in August. Recently, Eruditus raised $150 million through a refinancing round led by Mars Growth Capital.
