Eruditus raises $350 mn in debt from CPPIB to finance M&A activities

Educational services company has raised $350 million in debt financing from Canada Pension Plan Investment Board (CPPIB) for Emeritus, its online arm, to fuel mergers and acquisitions as part of a global growth strategy.

“With a year-on-year growth rate of 120 per cent, Emeritus estimates gross bookings of $500 million for the financial year. As the company continues to grow 2.5X organically, Emeritus will also accelerate growth through inorganic initiatives,” the company said.

“The pipeline of potential acquisitions is expected to contribute up to 30 per cent of Emeritus’ top line and in the next five years,” it added.

After the completion of this debt financing, Emeritus will have raised more than $1 billion in debt and equity. had also participated in Emeritus’ $650 million funding round in August 2021, which advanced the company’s valuation to $3.2 billion, quadrupling its Series D valuation from August 2020.

Investors in Emeritus also include Accel, Softbank Vision Fund 2, GSV, the Chan Zuckerberg Initiative, Leeds Illuminate and Prosus, as well as Sequoia Capital India and Bertelsmann and Chimera.

“Emeritus will expand our mission of making education accessible around the world by deepening our investment in the education space to reach different segments and audiences,” said Ashwin Damera, Co-founder & CEO, Emeritus and “Our…

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