Eruditus Contemplates Shifting Base to India; Positive Momentum for Spiritual Apps Amid Ayodhya Developments

Eruditus, the Singapore-based edtech unicorn backed by SoftBank, is contemplating a reverse flip to relocate its domicile to India. The move is part of a trend where several foreign-domiciled Indian startups are returning to India, often in preparation for potential IPOs. Eruditus, valued at $3.2 billion and the second-largest edtech in India, has engaged with two Big Four firms and multiple law firms for this strategic shift. This decision aligns with the growing market preference for profitable businesses in India and the valuation benefits associated with such moves. Other companies, including Razorpay, Groww, Pine Labs, Udaan, and Meesho, have also opted for similar reversals, driven by regulatory considerations or the desire to go public locally.

Eruditus reported robust financial performance for fiscal year 2023, achieving Rs 3,322 crore ($400 million) in revenue, marking a 75% increase from the previous year. The company’s CEO, Ashwin Damera, highlighted improved cost efficiencies, with marketing expenses decreasing from 56% to 29% of revenue between FY22 and FY23, and employee expenses (excluding non-cash share appreciation) dropping from 46% to 27%. Despite these positive developments, Damera refrained from commenting on the potential change in the company’s domicile. The overall trend of Indian startups returning home underscores the evolving landscape and strategic considerations within the tech and startup ecosystem.