Ed-tech platform upGrad has announced that it has completed the Rs 300 crore acquisition of Harappa Education. According to an official statement, the company also expects over 65% growth in revenue this fiscal at Rs 4,000 crore.
The city-based online edutech firm, founded in 2015, had doubled its revenue to a little over Rs 2,400 crore in FY22 from around Rs 1,200 crore in the previous year, when the company witnessed a sharp jump in its revenue from Rs 230 crore as Covid pandemic pushed the demand for its services, an official statement said.
“We have set a target of clocking Rs 4,000 crore revenue this fiscal. Also, we expect to add 10 lakh more students this year taking our total live customer base to 40 lakh,” Mayank Kumar, co-founder, managing director, upGrad said.
Upgrad is more focused on B2C and lacks presence in the B2B space, Kumar said on the buyout of New Delhi-based Harappa Education, cofounded by Pramath Raj Sinha.
“We see strong demand from our clients and with Harappa coming in, we believe we’ll be able to grow fast within the segment as we cross-leverage the synergies,” said Ronnie Screwvala, founding chairman and major shareholder of upGrad, said.
According to the official statement, Sinha, who was also the founder trustee of the Ashoka University, said Harappa Education had clocked Rs 75 crore revenue, up from Rs 25 crore a year before, but expects to net Rs 250 crore this year as there is an increasing demand from corporates to re-skill and upskill their workforce.
According to Kumar, post-merger, the entire 180 member Harappa team along with the founders will join the Upgrad team.
Furthermore, since the pandemic-induced push, upGrad, owned 25$% by Singaporean giant Temasek Holdings ( $120 million investment) and the World Bank Group arm IFC ($40 million) in April 2021 at a valuation of $850 million, has become the largest integrated higher education platform in the online space with over 40 lakh live students. upGrad announces acquisition of Harappa Education, targets to clock Rs 4,000 revenue in FY23.
With inputs from PTI.