EdTech startup Eruditus to acquire California-based iD Tech for $200 million

Online learning startup Eruditus announced a definitive agreement to acquire iD Tech, a California-based education startup, for $200 million. After closing the transaction, iD Tech will be owned by Eruditus but will operate independently, maintaining its team of instructors and employees, it said.

"While Eruditus' founding mission, and core business, is to provide higher education curriculum to leadership professionals - skills of the future like AR/VR, artificial intelligence, cybersecurity, software engineering, design thinking -- we believe that proficiency and mastery of these skills should begin in K12," Ashwin Damera, co-founder and CEO said in a statement.

Founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera, Eruditus offers management programmes and short courses remotely. Its subject areas include leadership and management, data science, digital transformation, banking and finance. It has tie-ups with foreign universities, including Columbia University, Massachusetts Institute of Technology and Harvard Business School.

The company is backed by Chan Zuckerberg Initiative (CZI), Prosus Ventures ( Naspers), and Leeds Illuminate Global Fund that led the last funding round in September 2020, doubling its valuation to $800 million in two years.

The announcement added that the $200 million acquisition is emblematic of the strong growth trajectory for the business. In India, Eruditus works with IIT-Delhi, IIT-Bombay, IIM-Calcutta, IIM-Kochi, XLRI, ISB among others.

The company closed with $185 million in revenues in FY 2021 and projects 2.5x growth in the next 12 months, with consolidated revenues reaching $500 million in FY22.