[Unicorn] UpGrad raises $185-million at a valuation of $1.2 billion from IIFL and others

Edtech startup upGrad has closed a $185-million funding round at a valuation of $1.2 billion, thus entering the coveted unicorn club. Singapore’s Temasek Holdings Ltd, the World Bank’s International Finance Corporation, and IIFL participated in the fundraising. “We are pleased with the investor interest ever since we opened up for fundraise, and had our maiden raise from Temasek, followed by IFC and IIFL in the last 60 days,” said Ronnie Screwvala, co-founder and chairperson of upGrad. “We will announce further updates on M&As, and unlock value as they unfold.”

The Mumbai-based startup raised $185 million in a continuous round; from Temasek ($120 million), IFC ($40 million), and India Infoline Finance ($25 million). UpGrad's founder group - Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli, continue to own over 70 percent of the company. IIFL is the latest to join upGrad's cap table. Incidentally, it had also led a $50 million round in BYJU'S earlier in June. The other unicorns in the edtech space include - India's most-valued startup BYJU'S and recently turned-Unicorn Unacademy.

“The valuation is at $1.2 billion, but as I keep saying, we are not a fan of the tag 'unicorn'. For us, it is only a means to a much larger goal. We are very focused on our path to being in the top three to five companies in global edtech, and serving a one-billion workforce across the 18 to 60 age group,” Screwvala added.

About upGrad

upGrad has pushed for expansion in international markets recently. It offers students over 100 courses in data science, AI-ML, blockchain, finance, programming and law. For the courses, it collaborates with universities such as Michigan State University, the IIT Madras and IIT Delhi, and Swiss School of Business Management, Geneva. More than a million users from over four dozen nations have accessed the platform’s courses. On its website, UpGrad says it has over 62,000 paid students. These courses cost between $3,300 to $6,750 and run for six months to two years. UpGrad is among the scores of Indian edtech startups that has reported skyrocketing growth as students move to online education post-pandemic.