Upskilling platform Scaler is finalizing a $40 million fundraise, according to people familiar with the matter. This would be its first funding round in over three years, with the last one, a Series B, in February 2022.
“Lighthouse is likely to lead a new funding round in Scaler, with some existing investors also participating. The deal is in its final stages and, barring any last-minute changes, is expected to close in a few weeks,” said a source requesting anonymity due to the private nature of the discussions.
Scale has so far raised over $75 million across rounds from the likes of Lightrock India, Peak XV Partners and Tiger Global. The firm last raised $55 million in Series B in February 2022 at a valuation of $710 million.
However, sources indicated that this will be a down round, with Scaler’s valuation expected to plunge to $350–$370 million after the new funding.
In response to Entrackr’s queries, Scaler said it does not comment on market speculation, while Peak XV declined to comment. Lighthouse had not responded by the time of publication.
Scaler specializes in upskilling college students and technology professionals by offering an intensive six-month computer science program. The course is delivered through live classes led by experienced tech leaders and subject matter experts.
While Scaler has yet to disclose its FY25 numbers, the company’s revenue from operations grew to Rs 384.5 crore in FY24 from Rs 316.7 crore in FY23. Optimization of major expense categories helped the company reduce its overall losses by 58% to Rs 139 crore in FY24.
At the beginning of FY25, Scaler laid off around 150 employees citing long-term growth and sustainability. It competes with Newton School, Masai School, and to some extent with Simplilearn.
Many growth and late-stage startups are operating in a challenging funding environment, raising capital at flat or reduced valuations. Spinny raised $131 million at the same valuation, while Euler Motors and Udaan did the same. Pratilipi completed a down round, and Stanza Living, CityMall, and The Good Glamm Group are in talks to raise funds at lower valuations. Fintech company CRED is raising $75 million at a $3.5 billion valuation, down from its earlier $6.4 billion.