UpGrad Becomes Unicorn: $185 Million Funding Round

UpGrad Achieves Unicorn Status with $185 Million Funding

UpGrad, a Bangalore-based company specializing in higher education and professional development, has reached a $1.2 billion valuation. This achievement follows a recent $185 million funding round secured on Monday.

Global investors are currently directing substantial capital into Indian companies, particularly within the world’s second-largest internet market.

Funding Details and Investor Participation

The financing round was spearheaded by Singapore’s Temasek. Additionally, the International Finance Corporation, part of the World Bank, and IIFL also participated in the investment.

An initial portion of this funding – approximately $120 million – was finalized in April, establishing a valuation exceeding $600 million.

Statement from UpGrad’s Leadership

“We have been encouraged by the strong interest from investors since initiating our fundraising efforts,” stated Ronnie Screwvala, co-founder and chairperson of upGrad.

He further noted the contributions of Temasek, IFC, and IIFL over the past 60 days.

Course Offerings and Global Reach

Established six years ago, UpGrad has been actively expanding its presence in international markets.

The platform provides access to over 100 courses covering areas such as data science, machine learning, artificial intelligence, blockchain technology, finance, programming, and law.

These courses are developed in collaboration with leading academic institutions, including Michigan State University, IIT Madras, IIT Delhi, and the Swiss School of Business Management, Geneva.

User Base and Course Costs

UpGrad reports that more than one million users from over four dozen countries have utilized its courses.

Currently, the platform boasts over 62,000 enrolled students in paid programs.

Course fees range from $3,300 to $6,750, with program durations spanning from six months to two years.

Growth in the Indian Edtech Sector

UpGrad is one of numerous Indian edtech startups experiencing significant growth.

This surge is attributed to the increased demand for online learning following school closures during the pandemic.

Comparison to Other Edtech Companies

Unacademy, backed by SoftBank and Tiger Global, was recently valued at $3.44 billion after a $440 million funding round.

Vedantu, supported by GGV Capital, is reportedly nearing the completion of a new funding round that would also grant it unicorn status.

Byju’s remains India’s most highly valued startup, having secured over $1.5 billion in funding in the past year.

Future Plans and Strategic Investments

Ronnie Screwvala indicated that the newly acquired funds will be used to explore potential mergers and acquisitions.

Screwvala previously founded a successful cable television business in South Asia and produced numerous successful Bollywood films.

He sold his entertainment company, UTV, to Disney in 2013 for an enterprise valuation of $1.4 billion.

India’s Growing Unicorn Landscape

UpGrad is the 21st Indian startup to achieve unicorn status in the current year, a significant increase from the 11 that did so last year.

Investors like Tiger Global, SoftBank Vision Fund 2, Falcon Edge, and Temasek have been increasing their investments in Indian companies in recent quarters.