The EdTech startup upGrad raises $120 M from Temasek

upGrad was founded in 2015 and it has been 100 % owned, funded and run by its co-founders as a capital-efficient business.

On Monday upGrad raised $120million (about Rs 897.3 crore) from Temasek, a Singapore based company, making this the first external fund raised by the giant of the EdTech industry.

The edTech startup upGrad plans to use this fresh funds to hire new and talented people, scale its global market operations, innovate its technology and to make better products.

upGrad claims to achieve its revenue goal by 2026 i.e $2 billion by expanding the graduate and post-graduate degree portfolio in India.

Ronnie Screwvala, co-founder of upGrad said”We welcome Temasek in our mission to power career success for each and every member of the global workforce as their trusted Life Long Learning partner and drive meaningful career outcomes”.

Mayank Kumar, co-founder of upGrad said “The raised funds will be used to expand the company’s global opportunities and deeper penetration in India, hence achieving the goal of making India the teaching capital of the world”.

Credit Suisse acted as the exclusive financial advisor to upGrad, and Rajaram Legal acted as legal advisor.

Brief about upGrad:

upGrad is an online higher EdTech company offering over 100 courses in collaboration with global universities like Duke Corporate Education (US), Michigan State University (US), IIT Madras, IIM Kozhikode, and others.

The platform has impacted over one million total registered learners in over 50 countries. 

The EdTech space has seen strong growth globally with the COVID-19 pandemic serving as an inflection point. 

While a number of players have raised fresh funding from investors, consolidation is also being seen in the industry with deals like Unacademy acquiring PrepLadder for $ 50 million and Byju’s buying WhiteHat Jr for $300 million and Aakash Educational Services for nearly $1 billion. Last year, upGrad also acquired The Gate Academy (TGA) and Rekrut India.