Exclusive: Unpacking Vedantu’s Series D round and secondary transaction

Vedantu announced its $100 million Series D round last week at a staggering $600 million valuation. While the company didn’t disclose the details of the round, Entrackr has decoded it through regulatory filings. The large part of the investment went into acquisition of primary shares but the deal also had a little secondary component.

Co-founders Vamsi Krishna, Pulkit Jain and Anand Prakash have offloaded equity shares to KB Global. We will come on this later. Let’s understand the split of the Series D round. As of now, Vedantu has raised close to $93 million in the Series D round, shows regulatory filings.

According to Fintrackr’s estimate, the company is valued at a little over $505 million post allotment of the Series D round. Entrackr has sent queries to Vedantu on valuation part. We Will update the post as and when they respond.

Coatue PE infused $66.2 million (Rs 496.29 crore) whereas GGV invested $11.56 million (Rs 86.5 crore), shows regulatory filings.Existing investor Tiger Global and Omidyar Network also participated in the Series D round, picking  up shares worth  $8.02 (Rs 60.15 crore) and  $7.88 million (Rs 33.83 crore) respectively.

Vedantu’s early backer WestBridge Capital has also invested $2 million$ (Rs 15.03 crore) in the fresh financing. Existing backers including Accel Partners, Legend Capital and TAL didn’t participate in the Series D round. 

After the fresh infusion, Accel is the biggest stakeholder with 13.98% stake while Tiger Global and Omidyar Network own 12.77 and 12.3% respectively of the Bengaluru-based edtech firm. TAL has 11.98% holding in Vedantu and Coatue PE acquired 11.15% after leading the Series D round.

GGV commands 6.13% stake in Vedantu and Westbridge owns 5.09%. Legend Capital has an ownership of 3.22% and other small stakeholders together hold 4.55%. At present, co-founders Krishna and Jain hold 2.59% stake each whereas Prakash owns 2.42% of Vedantu. The company’s total ESOPs pool has 11.23% stake.

The co-founders have sold out Rs 12.3 crore worth stake to KB Global. The trio offloaded 90,100 equity shares in total to the asset management fund in a secondary transaction. While Krishna and Jain have sold 20,150 shares each, Prakash has transferred 49,800 equity shares to KB Global Platform Fund.