Eruditus will deepen its presence in India for growth

The company, which derives 70% of its revenue from overseas markets, sees around 40% of its enrollments from the US, 25% from India and 33-35% from other global markets where it operates.

In FY23, the company’s revenue from operations grew by over 70% from Rs 3,343 crore A year ago it was Rs 1,962 crore.

“When it comes to the age group of 25-30 years, the number of Indians willing to learn or get educated is less than 10% and that is still a drop in the ocean. So, in that sense, there is a huge need and since traditional brick-and-mortar institutions will not be able to meet it, we need partnerships. So, in India, we work with IITs and IIMs to amplify the impact of their footprint,” Kalipatnapu told Mint on the sidelines of the second edition of the ASU+GSV and Emeritus Summit in Gurugram.

Eruditus partners with universities around the world to provide executive education to individuals and companies.

Globally, many experts in the edtech industry have highlighted the importance of the Indian market as universities around the world aim to capitalize on the country’s growing youth population.

Industry executives also stressed the importance of artificial intelligence (AI) and technological advancements in the educational sector. He believes AI could be a game-changer for teaching as it would help personalize the way students absorb information and optimize their pace of learning by providing visual cues or prompts.

“It’s going to have a very positive impact…there’s a lot of talk about how technology is going to take over education, but fundamentally it’s going to make them more capable and provide better access,” he said.

The edtech industry, which saw huge growth during the pandemic, found out the reality when the pandemic subsided and offline formats came back. As a result, many companies had to restructure their business models and embark on cost-cutting campaigns, including layoffs, to survive.

Talking about the long-term potential of hybrid learning, Kalipatnapu said the company is seeing a large number of people seeking online education. He said the gross enrollment ratio of people seeking admission to undergraduate education is around 30% in India, while in the US it is around 60%. “This means you need at least 30-40 million additional seats for people to do undergrad and you cannot build so many buildings… So, the scope for learning and upskilling is huge. “This gives us a lot of optimism in terms of the depth of the market,” he said.

The company is also expected to be profitable on a full-year basis in the current financial year (FY24). Eruditus follows the July–June accounting year. The Singapore-based company has also discussed shifting the domicile to India for stock-market listing.

Kalipatnapu believes that the addressable market is so large that many players may still exist. He also emphasized that investors are looking at this space on a long-term basis and are now being more deliberate about where they are allocating capital than they were three years ago. He said, they are now looking at different metrics like Ebitda and revenue growth, which is probably why negotiations have taken longer to close.

Founded in 2010 by Kalipatnapu and Ashwin Damera, Eruditus offers management education programs including short courses, degree programs, professional certificates and senior executive programs in collaboration with universities in the United States, Europe, Latin America, Southeast Asia, India and China. . Some of its investors include Accel, GSV Ventures, Prosus Ventures and Sequoia Capital India.

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Published: Feb 18, 2024, 11:45 PM IST