upGrad closes fresh round of investment worth $210 million

According to the company statement, upGrad is on track to record annual gross revenue of $400-500 million during FY23 out of which about 45% of total revenue will be realised from its own-branded online courses and programs.

upGrad team strength will grow to 7600 from the present 4800 in the next three months.
upGrad team strength will grow to 7600 from the present 4800 in the next three months.

Ed-tech major, upGrad has closed a fresh round of fundraise worth $210 million from marquee investors and Family Offices who joined the company cap-table. Founder Group also invested $12.5 million in this round to maintain their over 50% ownership in upGrad.

According to an official statement, this round of the fundraise has witnessed participation from ETS Global, Test of English as a Foreign Language (TOEFL) and  Graduate Record Examinations (GRE) Test Leader, Bodhi Tree, a joint venture of James Murdoch and Uday Shankar, Kaizen Management Advisors Private limited, Singapore based firm, Narotam Sekhsaria Family Office, Family office of Bharti Airtel, Ambuja Cements and ACC, and Artian Investments, Family Office of Lakshmi Mittal – ArcelorMittal along with existing investors Temasek, International Finance Corporation ( IFC) and India Infoline Finance Limited (IIFL).

According to the company statement,  upGrad is on track to record annual gross revenue of $400-500 million during FY23 out of which about 45% of total revenue will be realised from its own-branded online courses and programs

Furthermore, the statement mentioned that upGrad team strength will grow to 7600 from the present 4800 in the next three months and will include about 170 full-time faculty, 1600 teachers, and over 5000 on-contract coaches and mentors, taiming to build one of the largest full-time ed-tech faculty in the world.

“There is a massive re-skilling revolution taking place around the world and over the last five years, our more than 4800 colleagues have worked hard and smart to be at the epicenter of taking advantage of this, not just in India but around the world,” Ronnie Screwvala and Mayank Kumar,  co-founders, upGrad  said a joint statement while commenting on the fund raise.  

The statement further added that bucking the slowdown trend within the sector, upGrad has remained bullish with its program completion rate of over 80% and has emerged as a global leader in the higher education segment. 40% of the company’s total revenue is realised from repeats and referrals year-on-year, as per the statement. 

The co-founders further opined that higher ed-tech will be on the rise for the next four  to five decades. “upGrad in the last 12 months has re-shaped itself to be the most integrated company in this space with career opportunities for the College learners and Working Professionals from the age of 18 to 58 and will be a LifeLongLearning partner for millions in the coming years. We have always been very capital efficient while growing 100% year-on-year and hope to retain that discipline,” they claimed.

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