Scaler, the edtech and upskilling platform, is set to raise around USD 40 million (~INR 343 crore) in fresh capital at a significantly lower valuation than before, according to various industry reports.
This will be Scaler’s first fundraise in over three years, since its USD 55 million (~INR 471 crore) Series B in February 2022 which valued the company at USD 710 million (~INR 6,100 crore). The upcoming round is likely to be led by Lighthouse Funds with existing investors participating and is expected to value the company between USD 350-370 million (~INR 3,100 crore) – a 50% haircut.
A Rare Down Round for a High-Growth Edtech Company
The funding round is a “down round” where a company raises capital at a lower valuation than before. This was once a rare phenomenon but has become more common in the current market environment as investors have become more cautious and valuations across sectors – especially tech – are being recalibrated.
Scaler has raised over USD 75 million (~INR 645 crore) from top investors like Lightrock India, Peak XV Partners (formerly Sequoia India), and Tiger Global. None of the investors have commented on the round and Scaler itself has declined to comment on “market speculation”.
Strong Revenue Growth But Valuation Drop
Despite the valuation drop, Scaler has strong financials. The company reported INR 384.5 crore in operating revenue for FY24, up from INR 316.7 crore in FY23. Net losses fell 58% to INR 139 crore largely due to cost management.
Still the company had a strategic layoff of around 150 employees at the start of FY25 to improve long term sustainability – a move that shows even growth stage companies are under intense pressure in today’s capital environment.
Leadership & Expansion Moves
Scaler has been busy on the talent front too. In a significant leadership move, it appointed Abhinav Vijayvargiya, a former Swiggy and Khatabook executive, as its CFO in February 2025. He replaces Tapan Jindal who was CFO for over a year.
Vijayvargiya has 14 years of financial leadership experience and will be key in navigating Scaler through its next growth phase and funding round.
Also, as part of its global plans, Scaler has appointed Martin Reindl to head its Middle East operations with expansion plans in Saudi Arabia and Qatar.
Scaler’s Model and Competitive Landscape
Founded in 2019, Scaler offers a six-month computer science and software development program for college graduates and working professionals. The curriculum is taught via live online classes by industry experts.
Scaler has become a big player in the Indian edtech and upskilling space, competing with Newton School, Masai School, Simplilearn, and upGrad. The company has made four acquisitions to strengthen its capabilities in data science, machine learning, and software development.
Funding Crunch
Scaler’s valuation markdown isn’t an isolated incident. The Indian startup ecosystem, especially late-stage and growth startups, is going through a funding drought. High-profile companies like Spinny, Euler Motors, Udaan, and Pratilipi have raised capital at flat or lower valuations. Even well-funded fintech giant CRED is closing a USD 75 million (~INR 645 crore) round at a valuation of USD 3.5 billion (~INR 30,027 crore), down from its USD 6.4 billion (~INR 5,500 crore) peak.
As the market adjusts, investors are shifting focus from growth-at-all-costs to sustainable unit economics, positive cash flows, and clear path to profitability—Scaler seems to be adapting to this with financial prudence and leadership recalibration.
Conclusion
Scaler’s upcoming fundraise is a sign of resilience and adaptation. While the valuation may have gone down, the company is still showing financial growth, cost discipline, and strategic clarity. This down round could provide not only the much-needed runway but also a great case study on how Indian edtechs are navigating the changing funding landscape.
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