Team StartupCity

• Vedantu secures $11 million from existing investors in internal round
• Plans to onboard new investors and offer partial exits to early backers
• Funds to support AI, tech upgrades, and category expansion

Edtech startup Vedantu has raised $11 million (around Rs 97.5 crore) from its existing investors, including ABC World Asia, Accel India, and Omidyar Network. The fresh funding is part of an ongoing round that also includes plans to bring in new investors and offer partial exits to early stakeholders through secondary deals.

The Bengaluru based company plans to use the capital to strengthen its technology, expand into new categories, and scale its AI driven personalization for students. The funds will also help streamline its shareholder structure and fuel both organic growth and strategic acquisitions.

Vamsi Krishna,CEO,Vedantu, said this new capital comes at a turning point. After 18 months of disciplined execution, Vedantu reported its first profitable quarter in Q4 FY25, posting Rs 90 crore in collections and over Rs 6 crore in free cash flow. He emphasized that the company has been cash flow positive for six straight months, while also reducing overall burn by 30%.

Vedantu’s total collections grew by 55% year-on-year to Rs 284 crore, showing strong demand despite a broader funding slowdown in the edtech sector. The startup continues to serve over 10 million monthly users, with a base of 200,000 paying students and 1,200 teachers. It now operates over 100 hybrid learning centres and is expanding further through franchise partnerships.

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Looking ahead, Vedantu aims to deepen its reach in K–10 and test prep segments, and explore new verticals. With this fresh round of capital, it’s doubling down on building a sustainable and profitable edtech model.