SUMMARY
- UpGrad has reportedly secured an additional $60 million in funding from Temasek.
- Ronnie Screwvala has acquired Bharti Enterprises’ stake in the edtech for $20 million.
- Screwvala is planning to take UpGrad public within the next 7-8 quarters.
Mumbai-based edtech giant UpGrad has reportedly secured an additional $60 million in funding from Singapore’s state investment firm Temasek with a flat valuation of $2.25 billion.
In another development, Upgrad’s founder and chairman, Ronnie Screwvala, has acquired Bharti Enterprises’ stake in the company for $20 million, as per an ET report.
Bharti Enterprises previously owned a 1% stake in UpGrad following the company’s stock swap acquisition of skilling and training solutions firm Centum Learning in 2022.
Ronnie Screwvala, who is also known for founding UTV, now holds a 45% stake in UpGrad. He is stepping into a more prominent leadership role at the company following the exit of cofounder Mayank Kumar.
The report also mentions that Screwvala is planning to take UpGrad public within the next 7-8 quarters.
As per sources, the funding round has been completed. Screwvala’s decision to increase his ownership further emphasizes his dedication, particularly in light of recent changes and his intention to play a more active role in the company’s future.
This move positions Screwvala as one of the few entrepreneurs with a significant stake in a venture-backed startup, with Temasek and IFC among the company’s leading investors.
Founded in 2015 by Kumar, Screwvala, Phalgun Kompalli, and Ravijot Chugh, UpGrad provides higher education courses and skill development programs in partnership with universities.
The company has prominent investors including Temasek, Murdoch’s Lupa Systems, International Finance Corporation, and IIFL.
Earlier this year, UpGrad was in advanced talks to acquire US education firm Udacity and is seeking a fundraising of up to $100 million to finance the acquisition. At the time, it also engaged with a variety of external investors to secure around $50-60 million, with the remaining funds expected to come from existing investors.
Meanwhile, UpGrad aimed to secure Rs 287.5 crore $34.4 million in debt financing from EvolutionX Debt Capital in late June to support its expansion plans, cover operational costs, and meet general corporate needs. This move follows closely behind edtech unicorn Physics Wallah, which secured $210 million or Rs 1,756.7 crore in its Series B funding round led by Hornbill Capital, achieving a post-money valuation of $2.8 billion.
The edtech startup’s net loss increased by 76% to Rs 1,141.5 crore in FY23 from Rs 648.2 crore in FY22. It also reported an operating revenue of Rs 1,169.6 crore in FY23, a 97% increase from Rs 595 crore in FY22.
