Ashwin Damera: From Startup Skeptic to EdTech Unicorn Leader

In late 2016, Ashwin Damera, a Harvard Business School (HBS) alumnus, found himself embarking on a new learning journey—one that he had initially overlooked during his Ivy League education. His mission was to understand the essence of “zero,” the concept of value, and the art of valuation. He was joined in this quest by a familiar face from his HBS days, a batchmate. After a swift review of Damera’s investor pitch, the batchmate raised an eyebrow and asked, “Are you missing a zero?”

Damera’s response was an emphatic “no.” He was the co-founder of Eruditus, which he had started in 2010 with Chaitanya Kalipatnapu as an offline venture offering executive education courses in partnership with global universities. Initially bootstrapped, Eruditus remained profitable for the first five years of its existence. His HBS batchmate, however, wasn’t satisfied. He suggested inflating the number of universities Eruditus partnered with from 10 to 50. Additionally, he advised doubling the number of courses per university from 20 to 40 and the average batch size from 100 to 200. Lastly, the batchmate recommended increasing the price per batch. By applying these changes, the target revenue would balloon to $500 million.

Damera was taken aback, exclaiming, “This is not right at all.” The lesson was clear: to aim for a high valuation, one must think big. Ironically, nearly a year earlier in 2015, when Damera sought his first round of funding at $2 million, around two dozen investors reacted similarly. They questioned the business model and Damera’s approach. Despite achieving profitability and maintaining 100 percent equity in the venture for five years, investors were skeptical. They questioned if the business could ever command a high valuation.

Eruditus’s journey to the unicorn club was unconventional. In August 2021, the company secured $650 million in a Series E round led by Accel and SoftBank Vision Fund II at a valuation of $3.2 billion. This transformative investment not only placed Eruditus among the unicorns but also solidified its position as the third-largest edtech player in India, following Byju’s and Unacademy. Damera’s journey from that valuation lesson to his unicorn success has been an adventurous one. Over the past decade, Eruditus has forged partnerships with prestigious universities like MIT, Columbia, Harvard, Cambridge, INSEAD, and many more. The company offers courses in 80 countries and several languages, including Spanish, Portuguese, and Mandarin. Impressively, Eruditus now derives 35 percent of its revenue from the United States.

The valuation of Eruditus has skyrocketed, surging from $30 million in 2016 to $400 million in 2019 and $800 million in 2020. The recent Series E round marked a fourfold increase in valuation. It’s worth noting that two of the investors in this round initially declined to support the company during its early days, highlighting the remarkable transformation. In addition to its valuation growth, Eruditus has experienced remarkable revenue expansion, climbing from $11 million in FY17 to $66 million in FY19 and $175 million in FY21. The company now targets $505 million in revenue for the next fiscal year, with aspirations to surpass $1 billion in revenue within three years.

Damera’s approach to capital and growth evolved from his initial entrepreneurial journey with Travelguru in the mid-2000s. His perspective shifted after realizing the importance of robust unit economics and fundamental business strength. While Travelguru faced well-funded competitors like MakeMyTrip, Cleartrip, and Yatra, Damera’s emphasis on sustainable business practices guided him to a different path.

The pivot to profitability-oriented growth at Eruditus paid off, enabling the company to transform from a bootstrapped startup to a unicorn. Damera’s belief that raising excessive capital for its own sake can be detrimental remains a core principle for him. Damera’s early experiences at HBS provided the foundation for his bold ambitions, equipping him with the confidence and determination to succeed.