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MEDIA (TRADITIONAL)
bertelsmann-erleben.de

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Other Investors | Alive

About Bertelsmann

Bertelsmann offers services in media, communication and the education sector. The company is based in Gutersloh, Germany.

Bertelsmann Headquarter Location

Carl-Bertelsmann-Strasse 270

Gutersloh, 33311,

Germany

Latest Bertelsmann News

Exclusive: Eruditus early investor Bertelsmann makes 40x returns in part stake sale

Aug 17, 2021

The German media conglomerate sells about 3 percent stake to new investors SoftBank, Accel and others, gaining $110 million in cash. It still holds over 10% in the SoftBank-funded company, which was valued at $3.2 billion. August 17, 2021 / 08:20 AM IST Bertelsmann sold about 3 percent stake to new investors SoftBank, Accel and others, with its remaining stake still worth over $400 million at the current valuation. Bertelsmann India Investments, an early investor in online education firm Eruditus, sold a part of its stake, gaining about $110 million in cash. The German media conglomerate still holds over 10 percent in the SoftBank-funded company, which was valued at $3.2 billion, said people aware of the matter. Bertelsmann sold about 3 percent stake to new investors SoftBank, Accel and others, with its remaining stake still worth over $400 million at the current valuation. Secondary valuation same as first Notably, Bertelsmann sold its shares in the so-called secondary round for $3.2 billion -- the same as in the primary round valuation. Primary shares refer to a fresh investment in a company by investors, with new shares being issued. Most secondary share sales happen at a discount of 15-20 percent, sometimes much more, depending on the terms the founders and incoming investors dictate. “It is pretty rare. It shows investors’ confidence in the company, that even secondaries are happening at the same valuation, and that the valuation is not just a paper figure or based on far-off projections. It is practical,” said a person briefed on the terms, requesting anonymity. Eruditus declined to comment and Bertelsmann did not respond to queries. Return of about 40 times Bertelsmann India, led by Harvard alumnus Pankaj Makkar, first invested $8 million in Eruditus’ Series B round in April 2017. It also upped its stake in the next round and invested over $10 million, when Sequoia India came in. It has sold a portion of this first $8 million. While it invested in 2017 at a share price of about $3,500, they sold their shares in this round at a price of $137,000 -- a return of about 40 times, sources said. Bertelsmann India’s most lucrative investment The deal likely marks Bertelsmann India’s most lucrative investment and exit in its Indian portfolio. The German media conglomerate has been investing in India for a decade, although it has been more active in the last five years. Since Bertelsmann makes investments from its parent’s balance sheet, unlike typical venture capital firms, it does not have the stringent exit timelines or return commitments to outside investors that VC firms make. Its other investments include hotelier Treebo, gold loans startup Rupeek, small business lender Lendingkart and meat delivery firm Licious. Other investors, including Sequoia, Prosus Ventures (Naspers) and the Chan Zuckerberg Initiative have held onto their shares. Sequoia, which invested in late 2018, is sitting on returns worth 5.5-6 times its investment of over $50 million so far. Prosus, CZI and others invested in Eruditus last year, valuing it at $800 million. The value of their shares has quadrupled since. Growth of Eruditus Founded by Ashwin Damera and Chaitanya Kalipatnapu in 2010, Eruditus started out with offline classes with faculty from Europe’s INSEAD and the Indian Institute of Management (Ahmedabad), teaching a 10 day-classroom programme in a 5-star hotel for 10-15 people. CEO Damera spoke about its early models and challenges here . From 2015 onwards, it started teaching online, and has raised investor money. M. Sriram

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