SUMMARY
- upGrad’s cofounder and MD Mayank Kumar has stepped down from his leadership position to start a new venture.
- His new startup focuses on placing skilled Indian workers abroad, particularly in the healthcare sector.
- upGrad is in the process of securing a funding of $50-60 million from its existing investors.
Mayank Kumar, the cofounder and managing director of the edtech giant upGrad, has reportedly stepped down from his leadership position to start a new venture.
As per ET’s sources, Kumar has been reducing his involvement in the company since October. He is currently seeking investors for his new startup, which focuses on placing skilled Indian workers abroad, particularly in the healthcare sector.
It has been confirmed that upGrad is in the process of securing a funding of $50-60 million from its existing investors, with a valuation of $2.25 billion.
The news also mentioned that Ronnie Screwvala, the co-founder and chairman, will be taking a more active role in the direction of upGrad following Kumar’s exit.
However, it was also stated that there will be no changes in the ownership structure of the company after Kumar’s departure.
The report further detailed that Screwvala’s involvement in the company’s management is aligned with its plans for an initial public offering (IPO) in India, and his increased role within the company is expected to impress investors in the public market.
Founded in 2015 by Kumar, Ronnie Screwvala, Phalgun Kompalli, and Ravijot Chugh, upGrad provides higher education courses and skill development programs in partnership with universities.
The company is backed by major investors such as Temasek, Murdoch’s Lupa Systems, International Finance Corporation, and IIFL.
Earlier in 2024, upGrad was in advanced talks to acquire US education firm Udacity and is looking to raise up to $100 million for the acquisition. It had also been in discussions with external investors to secure around $50-60 million, with the remaining funds expected to come from its existing investors.
upGrad was in the process of raising Rs 287.5 crore or $34.4 million in debt from EvolutionX Debt Capital in June to support its expansion plans, cover operational costs, and for general corporate activities.
This development comes weeks after its competitor Physics Wallah secured $210 million or Rs 1,756.7 crore in Series B funding round led by Hornbill Capital, valuing the company at $2.8 billion.
Notably, he startup’s net loss increased by 76% to Rs 1,141.5 crore in FY23 from Rs 648.2 crore in FY22. It reported an operating revenue of Rs 1,169.6 crore in FY23, marking a 97% increase from Rs 595 crore in the previous fiscal year.
