Mumbai, June 18 -- K12 online tutoring unicorn Vedantu is in talks to raise $10-15 million via a convertible equity round from its existing investors, two people with direct knowledge of the discussions told Mint. The firm is looking to shore up capital as it chases full-year profitability and offline expansion ahead of its initial public offering (IPO) in two years. Its fundraising move comes amid a broader slowdown in edtech funding, with founders and investors increasingly divided over valuations set during the 2020-21 e-learning boom. "Mismatch in valuation continues, so it is in talks to raise a convertible equity round with most of its existing investors participating," said one of the two people, seeking anonymity. Existing investors include ABC World Asia, Accel, Tiger Global, WestBridge Capital, and Omidyar Network India. Unlike typical equity rounds, where investors get shares immediately, convertible equity delays both valuation and issuance of share till typically a priced funding round or an IPO happens. Convertible rounds have gained traction in India's startup ecosystem, as it started to see more down rounds after the covid-led boom in tech valuation, with investors seeking to bet on companies at a lower valuation than the last round. "Multiple discussions keep happening, but nothing is on paper. We continue to explore and engage people and potentially look to raise at opportune terms. We have been receiving multiple inbounds because of our growth and profit numbers," Vedantu co-founder and CEO Vamsi Krishna said in a response to Mint's queries. Founded in 2011, Vedantu is a hybrid test preparation platform offering online and offline classes. It acquerd offline player Deeksha to further boost its offerings. The company became a unicorn in September 2021 after raising $100 million in a Series E round led by ABC World Asia. It has regularly tapped venture debt from the like of Innoven Capital, Stride Ventures and Alteria Capital, typically for Rs.8-15 crore. Its fundraising efforts come ahead of a planned $150-200 million IPO targeted for 2026- 2027, and providing exits to early investors besides raising growth capital, Mint reported in March. Vedantu's consolidated operating revenue rose 21% year-on-year to Rs.184 crore in FY24, and losses narrowed by 58% to Rs.157 crore....