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upGrad’s losses widen to Rs 626 crore in FY22

The losses could also be attributed to upGrad’s acquisition spree.

upGrad’s losses widen to Rs 626 crore in FY22
The Mumbai-based startup saw its total expenses rising to Rs 1,300.6 crore.

Edtech unicorn upGrad saw its losses widen to Rs 626.6 crore in financial year (FY) 2022, a significant jump from the Rs 211.1 crore it reported in FY21, on the back of increasing employee-related spends and advertisement expenses.

The Mumbai-based startup saw its total expenses rising to Rs 1,300.6 crore, as against Rs 513.8 crore in FY21. Advertising and promotion spends, the largest chunk for the company, more than doubled to Rs 424 crore in FY22, from Rs 205.1 crore in FY21. Employee benefit, its next biggest expense category, soared to Rs 383.2 crore in FY22 from Rs 161.5 crore in FY21.

The losses could also be attributed to upGrad’s acquisition spree. The Ronnie Screwvala-led upskilling platform has acquired about 14 companies and indicated that it would likely continue acquiring companies to consolidate its position in the edtech space; the space has seen capital drying up as the demand for online learning wanes with students returning to physical classes.

However, upGrad has seen its operating revenues nearly double to Rs 679.1 crore in FY22, its regulatory filings sourced from Tofler showed. The company is also focused on expanding its offline presence. Earlier this month, upGrad announced it would invest $30 million to open 10 global campuses next year across India, the US and other regions under its new brand UGDX, underscoring its demand.

In the run-up to its IPO in 2024, upGrad has also announced that it would merge all its companies into “one upGrad”. The company, valued at about $2.25 billion, has raised around $420 million in capital from investors like Temasek, Bodhi Tree and others.

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First published on: 11-11-2022 at 07:55 IST