Edtech firm upGrad becomes new unicorn at $1.2 billion valuation
- IBEF
- August 10, 2021
UpGrad, a global online higher education company, became another unicorn from the country on Monday, announcing a total investment round of US$ 185 million at a market valuation of US$ 1.2 billion.
Temasek, IFC (International Finance Corporation, a sister organisation of the World Bank), and IIFL contributed new funds to the company.
"We're very focused on being one of the top three-five edtech firms in the world, serving a one-billion-strong workforce aged 18 to 60. Since we opened up for a fundraise and had our first raise from Temasek, followed by IFC and IIFL in the last 60 days, we've been happy with investor interest "upGrad's Chairperson and Co-Founder, Mr. Ronnie Screwvala, stated.
UpGrad received US$ 120 million from Temasek, a Singapore-based global investment firm, in April.
"We'll keep you updated on M&As and unlocking value as they happen," he said in a statement. "Yes, the latest value was US$ 1.2 billion, but as I keep saying, we're not fans of the tag of unicorn; for us, it's just a means to a much larger objective," he said.
According to recent reports, the company is in advanced talks to raise US$ 400 million at a US$ 4 billion value.
As part of its non-linear growth plan, upGrad has set aside US$ 250 million for mergers and acquisitions (M&As) over the next seven to nine months.
By March 2022, upGrad expects to have surpassed a US$ 500 million annual revenue run rate, and it plans to raise close to US$ 400 million at a US$ 4 billion value.
UpGrad has developed a powerful digital platform and a highly immersive learning experience with numerous contact points in order to capture over 70% of the Indian higher education market for working professionals.
UpGrad purchased worldwide firm KnowledgeHut for an unknown price earlier this month.
KnowledgeHut, an upGrad company, expects revenue to exceed Rs. 300 crore (US$ 40.40 million) next year, with 65% coming from nations in North America, the Middle East, and Southeast Asia.
According to industry estimates, India presently has 53 unicorns with a worth of Rs. 1.4 lakh crore (US$ 18.85 billion).
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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