Edtech unicorn upGrad has successfully raised Rs 287.5 crore (approximately $35 million) in debt funding from EvolutionX, marking the Mumbai-based company’s first debt financing this year. The funding was facilitated through a special resolution passed by upGrad’s board to issue 28,75,000 debentures at Rs 1,000 each.
The newly acquired funds will be directed towards growth initiatives, operating expenses, and general corporate purposes, as indicated in the company’s regulatory filings accessed from the Registrar of Companies.
To date, upGrad has accumulated over $650 million in total funding, including $36.5 million raised through a rights issue from Temasek, founder Ronnie Screwvala, and others in March of the previous year. The Temasek-backed company, with Temasek holding a 20.7% stake and Ronnie Screwvala holding a 22.4% stake, was reportedly in talks to raise $100 million to finalize the acquisition of online education firm Udacity.
In 2022, upGrad ventured into the offline higher education sector, investing $30 million to establish ten global campuses across India, the US, and other regions. The company has seen significant growth, with operational revenue rising by 72% to Rs 1,194 crore in FY23 from Rs 692 crore in FY22. However, this growth has been accompanied by an 82% increase in losses, amounting to Rs 1,114 crore in FY23. The company has yet to file its annual results for FY24.
This latest funding round underscores upGrad’s commitment to expanding its educational offerings and solidifying its position in the edtech industry.
Source: Entrackr
