Singapore’s sovereign wealth fund, Temasek has invested an additional $60 million in upGrad, an upskilling and higher education platform. According to sources, this acquisition maintains the company’s valuation at US$2.25 billion.
As per sources, in a separate development, upGrad Founder and Chairman Ronnie Screwvala has acquired Bharti Enterprises’ stake in the company for $20 million. Bharti Enterprises held a 1 percent stake in the firm following the latter’s stock-swap acquisition of Centum Learning in 2022. With the secondary transaction, the total funding round is now $80 million.
The report said Screwvala, a seasoned entrepreneur known for founding UTV, now has a 45 percent stake in upGrad and is expected to assume a more significant role following the departure of co-founder Mayank Kumar.
The report quoted a source as saying that the funding has been finalised. Ronnie’s increased stake underscores his commitment amid recent changes and his more active involvement in the future. This positions Screwvala as one of the few entrepreneurs with a substantial shareholding in a venture-backed startup, with Temasek and IFC listed among the company’s key investors, the report added.
As a source mentioned, upGrad is currently generating approximately Rs 600 crore in quarterly revenue, which equates to about Rs 2,400 crore for the current fiscal year.
Screwvala’s return aligns with upGrad IPO plans in India, and his enhanced engagement may positively influence public market investors. The total funding round for upGrad amounts to $80 million, including the secondary transaction between Bharti Enterprises and Screwvala, making it the third-largest EdTech sector funding amidst ongoing industry challenges.
The report mentions that before this equity funding, the company completed a $35 million debt financing from Evolution X, a joint venture between DBS and Temasek.
upGrad, founded in 2015, provides various B2C skilling programmes. Through the platform, top Indian and international universities can offer executive doctorates, master’s degrees, and diplomas. Under the B2B model, several programmes are designed for enterprise clients and other staffing and recruitment services. The company entered the offline higher education sector in 2022 and allocated $30 million to establish ten worldwide campuses in India, the US, and other areas. It collaborates with over 20 Tier-I and Tier-II universities, providing more than 70 courses across various fields, including data science, management, digital transformation, technology, and law.
