For Eruditus, a prominent player in bringing forward a host of exciting executive education solutions , this shift towards online learning had a unique catalyst – Bertelsmann India Investments (BII). When Eruditus and BII first engaged in conversation, Pankaj Makkar, Managing Director of BII, recognized the extraordinary potential within Eruditus’s business model. But then there was a problem. At that point in time, Eruditus primarily was a classroom business with strong partnerships with renowned global universities such as INSEAD, Wharton, and Kellogg. While this offline approach was a challenge, Eruditus’s drive and innovation piqued Makkar’s interest. Makkar’s message to Eruditus was unequivocal: “To unlock real growth and scalability, you need to embrace the online realm,” shared Ashwin Damera, CEO and Co-founder of Eruditus.
A year and a half down the road, when Eruditus reached out for a second meeting with BII, Makkar was in for a surprise. Eruditus had transformed into a scalable online business, and was innovating and expanding in all quarters. Eruditus had embraced Makkar’s feedback wholeheartedly, placing their trust in BII’s wealth of global education knowledge which was reflected in their substantial partnerships with multinational giants. It was a pivotal moment that signified a significant turning point in Eruditus’s journey of evolution with BII.
The progress that Eruditus had made within just a year and a half was immense and the numbers spoke for this astounding shift. In their initial meeting with BII, Eruditus’s revenue stood at around $3-4 million but in the second meeting, that figure had more than doubled to $8-9 million, with a significant portion coming from the online segment. Notably, Eruditus hadn’t just retained its existing partnerships, it had also added three new schools to its roster during this transition.
Makkar enthused, “The second conversation with Eruditus left me absolutely astounded. I immediately cancelled my other appointments for the day and my meeting with Ashwin continued for another four hours. By the end of it, it was abundantly clear for me that BII and Eruditus were destined to be partners.”
In an attempt to celebrate remarkable partnership journeys like this, Bertelsmann India Investments introduced the engaging BII Brunchlabs podcast series earlier this year. This dedicated series is a treasure trove of insights, anecdotes, and invaluable advice from founders, presented in their most candid and authentic avatar. In its third episode, BII shines a spotlight on this inspiring partnership with Eruditus. As you tune in, be prepared to immerse yourself in captivating conversations that uncover the magic that unfolds when two organisations share not only a financial stake but also a deep-rooted commitment to innovation and transformation.
BII’s unwavering commitment to nurturing entrepreneurial talent and propelling their success shines brilliantly through their dynamic partnership with Eruditus. This wasn’t just any partnership – it was an electrifying journey to global recognition. Together, they opened the doors to prestigious international institutions, setting the stage for incredible collaborations.How it began
But here’s the interesting twist. BII’s vision in supporting Eruditus wasn’t confined to business schools alone. They had their sights on propelling Eruditus into a wide array of professional domains, from engineering to medicine, education, and public health. Their mission was crystal clear: democratising education and making top-tier courses accessible to all, irrespective of their location or background. This strategic shift didn’t just expand Eruditus’s course catalogue; it also resonated with the growing global appetite for high-quality online education.
Eruditus now offers a range of fantastic services to make the education experience as exciting as it can get. This is evident in its comprehensive suite of services which encompass critical aspects like student support, live teaching, the development of assessment rubrics to ensure the dissemination of high-quality education, and initiatives to enhance affordability and accessibility. The significance of accessibility cannot be overstated, given that a significant majority of their students hail from outside the United States, and a notable proportion are based in India. However, Ashwin Damera acknowledges the significant journey ahead, especially given the vast landscape of approximately 20,000 universities worldwide. However, it is noteworthy that Eruditus has successfully forged collaborations with 70 of them, indicating a positive and promising direction. With BII’s support, their vision is a gradual expansion in terms of both the number of partnerships and the diversification into various sectors of education, including fields such as medical and engineering. In 2022, Eruditus positively impacted the lives of 250,000 students and it aspires to further elevate this figure, with the goal of reaching at least one million students within the next three years. This ambitious mission reflects the synergy between Eruditus and BII in their pursuit of fostering global access to high-quality education.
Throughout the Brunch Labs conversation, Damera reflects how with BII’s guidance and investment, Eruditus made a decisive shift from a classroom-based model to a thriving online education business, underpinning their global expansion. He adds, “Bertelsmann has a lot of experience in global education and we realised that we had a lot to learn from them. This learning was beyond money and helped us understand why going online was important. We did not know at that time that there would be an Emeritus in 2015. It was BII who planted that seed in us, which we nurtured to reach the fruitful place we are at today. We are very grateful to Bertelsmann for the initial hand holding.”
All that awaits EdTech
In line with these exciting sentiments, Pankaj Makkar highlighted the transformative role that EdTech is set to play in the coming decade. He underscores the global outlook that EdTech should wholeheartedly embrace, as exemplified by Eruditus, a global champion right from its inception. He also drew parallels between EdTech and e-commerce, citing connections to how e-commerce paved the way for ancillary companies and making a compelling case for EdTech’s enablement. Eruditus, with its well-established global presence, of course, holds incredible potential in EdTech to transcend geographical borders. The result? Quality education within reach of learners across the globe.
“Eruditus is a very special investment for us,” Makkar recounts. “Some of our other ventures, each charting their unique path of innovation, have much to gain from the Eruditus journey, just as you continue to learn from them. This is a fundamental aspect of our investment philosophy.” He further adds, “For me, backing a company with the potential to become a global leader and an industry titan, much like Amazon in the field of edtech, is precisely why I chose the path of venture capitalism. And this explains why we are committed to be the deep supporter of Eruditus in its growth journey.”
What does the BII and Eruditus partnership looks like in the future
Ashwin Damera also reflects on the journey ahead with BII, acknowledging that they are still in the early phases, with skill gaps revealing themselves each day. He emphasises, “One of the reasons why we value Bertelsmann as an investor is because of their long-term perspective.” Because of this, the association has enabled Eruditus to dedicate significant time in planning the future and strategising several things such as the next curve in higher education. Consequently, the collaboration has kept the enthusiasm intact throughout the process.
Makkar further sheds light on Eruditus’s remarkable success in fortifying its core business and navigating S-curves, resulting in the exploration of adjacent domains and substantial outcomes. The pursuit of building the next S-Curve is a testament to their continuous drive for innovation. Presently collaborating with 70 universities, Eruditus harbours ambitious plans to expand this network to encompass 150-200 institutions. This partnership underscores the compatibility and trust required when selecting an investor, and how this can enable big changes.
A partnership for mutual growth
The Brunch Labs session also aptly highlighted BII’s deep and enjoyable chemistry with Eruditus and the excitement surrounding the partnership’s goal of building a substantial education business. Both Makkar and Damera reflect why valuation should not be the sole criterion while building a partner-investor relationship. Factors such as compatibility and trust play pivotal roles, as they enable the alignment of values and vision.
Damera says, “Very often people select an investor based on their valuation but there are many things apart from valuation that matters. It is very important to understand that one does not join hands with investors to build a unicorn, we join hands to incubate ideas and solve problems.”
With Brunch Labs, BII marks a decade of championing Indian startups and their visionary founders, and BII has been a driving force behind this incredible journey. Over the past ten years, they’ve not only elevated India’s entrepreneurial landscape but have also collaborated with founders brimming with groundbreaking ideas and an unwavering passion to craft meaningful products.
Among the roster of BII-supported startups, notable names like Eruditus, Pepperfry, Shiprocket, Rupeek, Licious, and Lendingkart have experienced meteoric growth, now reigning as category leaders and ‘unicorns.’ During this remarkable decade, BII has injected approximately $300 million into over 17 startups across cutting-edge sectors, including fintech, healthtech, and agritech.
This partnership between BII and Eruditus is fostering the success of thousands of individuals, providing them with the tools, knowledge, and opportunities to achieve their goals and ambitions. As India stands as the third pillar of the global startup ecosystem, following closely behind the US and China, BII’s continued involvement is poised to further fortify this position.
