India’s EdTech (education technology) sector has been a rollercoaster ride in recent years. After a massive boom during the COVID-19 pandemic, when online learning became a necessity, the sector faced challenges like reduced funding and a shift back to offline education. However, 2025 has shown signs of recovery, with some EdTech companies securing significant investments to fuel their growth. These funding rounds reflect renewed investor confidence, driven by innovative business models, hybrid learning solutions, and the integration of technologies like artificial intelligence (AI). Below, we dive into the top five funding rounds in India’s EdTech sector for 2025, explaining who got the money, how much, and what they plan to do with it.
1. Physics Wallah (PW) – $210 Million
Company Overview: Physics Wallah, started by Alakh Pandey as a YouTube channel in 2016, has grown into one of India’s most popular EdTech platforms. It offers affordable online and offline courses for students from Class 3 to those preparing for competitive exams like JEE, NEET, and government jobs. With 46 million students and 180 physical centers, PW is a household name for quality education in multiple Indian languages.
Funding Details: In 2025, Physics Wallah raised a massive $210 million in a Series B funding round, led by Hornbill Capital (a partnership between China’s Orchid Asia and India’s Hornbill). Existing investors like Lightspeed Venture Partners, WestBridge, and GSV also chipped in. This round valued PW at $2.8 billion, making it one of India’s top EdTech unicorns.
What’s the Plan?: The funds will help PW expand its offline centers, enhance its AI-driven learning tools, and reach more students in smaller cities and towns. They also plan to strengthen their content in regional languages to make education accessible to everyone. With rumors of a potential initial public offering (IPO) in 2025, PW is gearing up to dominate the EdTech space.
Why It Matters: PW’s focus on affordability and quality has won the hearts of millions. This funding shows that investors believe in their mission to make education inclusive, especially in Tier-2 and Tier-3 cities.
2. Eruditus – $150 Million
Company Overview: Eruditus is an EdTech giant that partners with top global universities like Harvard, MIT, and INSEAD to offer online courses for working professionals. It focuses on upskilling and reskilling, helping people advance their careers through short-term and executive education programs.
Funding Details: In 2025, Eruditus secured $150 million in a Series F funding round. The round was led by existing investors like SoftBank Vision Fund and Accel, with participation from new investors. This brought Eruditus closer to its goal of expanding globally while strengthening its presence in India.
What’s the Plan?: Eruditus aims to use the funds to develop AI-powered personalized learning experiences, expand its course offerings, and enter new markets in Southeast Asia and the Middle East. They also plan to make their platform more user-friendly for Indian professionals seeking global certifications.
Why It Matters: With India’s workforce looking to upskill for better job opportunities, Eruditus bridges the gap between Indian learners and world-class education. This funding signals strong investor faith in the growing demand for professional learning.
3. Avanse Financial Services – $120 Million
Company Overview: Avanse Financial Services isn’t your typical EdTech company. It provides education loans to students pursuing higher studies in India and abroad. By making financing accessible, Avanse supports students’ dreams of studying at top institutions.
Funding Details: In 2025, Avanse raised $120 million in a funding round led by private equity investors, including Warburg Pincus. This was one of the largest funding rounds in the education financing segment, highlighting its importance in the EdTech ecosystem.
What’s the Plan?: Avanse will use the funds to expand its loan portfolio, reach more students, and introduce tech-driven solutions like faster loan approvals through AI. They also plan to partner with more educational institutions to offer customized financing options.
Why It Matters: Education can be expensive, and many Indian students rely on loans to pursue their dreams. Avanse’s funding shows that investors see education financing as a critical part of the EdTech growth story, especially as more students aim for global education.
4. upGrad – $80 Million
Company Overview: upGrad is a leading EdTech platform focused on higher education and upskilling. It offers online degree programs, professional certifications, and short-term courses in fields like data science, management, and technology, partnering with top universities and industry experts.
Funding Details: In 2025, upGrad raised $80 million in a funding round led by Temasek, with participation from existing investors like Ronnie Screwvala’s Unilazer Ventures. This round reflects upGrad’s strong position in the professional learning space.
What’s the Plan?: The funds will be used to expand upGrad’s course catalog, particularly in emerging fields like AI, cybersecurity, and healthcare. They also plan to strengthen their offline presence through hybrid learning centers and improve their AI-driven career counseling tools to help learners find better jobs.
Why It Matters: With India’s job market becoming more competitive, upGrad’s focus on upskilling professionals is crucial. This funding round shows that investors are betting on the growing demand for lifelong learning and career-oriented education.
5. LEAD School – $50 Million
Company Overview: LEAD School works with private schools across India to provide technology-driven solutions for K-12 education. It offers digital learning content, teacher training, and school management tools to improve the quality of education in schools.
Funding Details: In 2025, LEAD School raised $50 million in a funding round led by GSV Ventures, with participation from WestBridge Capital. This round reinforces LEAD’s position as a key player in transforming school education.
What’s the Plan?: LEAD will use the funds to partner with more schools, especially in smaller cities, and enhance its AI-powered learning platforms. They also aim to develop new tools for personalized learning and teacher support, ensuring better outcomes for students.
Why It Matters: With over 1.5 million K-12 schools in India, there’s a huge need for tech solutions to improve education quality. LEAD’s funding highlights the potential of EdTech to transform traditional schools, making them more effective and engaging.
Why These Funding Rounds Matter
The EdTech sector in India faced tough times after the pandemic, with funding dropping from $4.1 billion in P1 to just $321 million in 2023. However, 2025 has shown signs of recovery, with total funding reaching around $640 million, driven by these major deals. These funding rounds reflect a shift in investor focus toward companies with sustainable business models, innovative technologies like AI, and a clear path to profitability.
- Innovation and AI: Companies like Physics Wallah, Eruditus, and upGrad are using AI to create personalized learning experiences, making education more effective and accessible.
- Hybrid Models: The shift to hybrid learning (online + offline) is evident, with companies like PW and LEAD expanding their offline presence to meet the demand for in-person education.
- Accessibility: Avanse’s focus on education financing ensures that more students can afford quality education, while PW and LEAD are reaching smaller cities and towns.
- Global Ambitions: Eruditus and upGrad are not just focusing on India but also expanding globally, showcasing the potential of Indian EdTech on the world stage.
Looking Forward
The top five funding rounds of 2025 show that India’s EdTech sector is bouncing back, but it’s evolving. Companies that focus on affordability, quality, and technology-driven solutions are likely to thrive. With government initiatives like the National Education Policy (NEP) 2020 promoting digital learning and skill development, the future looks promising for EdTech in India. These funding rounds are a sign that investors believe in the sector’s potential to transform education and empower millions of Indian students and professionals.
Last Updated on Thursday, July 10, 2025 10:33 am by Ganpisetty Surya Teja
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