Edtech unicorn Upgrad doubles valuation with $225-mn funding round
India’s UpGrad Education Pvt, founded by Mr. Ronnie Screwvala, almost doubled its valuation to US$ 2.25 billion in a funding round that included billionaire Mr. James Murdoch’s Lupa Systems LLC and US testing and assessment provider Educational Testing Service (ETS). ETS develops and takes standardised tests including the TOEFL (Test of English as a Foreign Language) and Graduate Record Examination (GRE).
The family offices of Indian billionaires Mr. Lakshmi Mittal of ArcelorMittal SA and Mr. Sunil Bharti Mittal of Bharti Airtel also participated in the round, as did existing investors, including Temasek Holdings Pte. The funding round is set to increase by a further US$ 100 million during a second close at a higher valuation.
According to the Mr. Screwvala, UpGrad is aiming for a gross revenue of US$ 500 million in the fiscal year ending in March 2023. In India, college students and working professionals will account for four-fifths of it, but he expects domestic and international sales to be equal in about three years.
UpGrad courses, which range in length from a few months to a few years and cost between Rs. 50,000-8,00,000 (US$ 640-10,253), will be taken by an estimated 3 million people in FY23. Apart from India, the company is rapidly expanding in Indonesia, Vietnam, and the Middle East.
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