Edtech Unicorn upGrad To Raise $34 Mn Debt Funding From EvolutionX

Ronnie Screwvala-led edtech unicorn upGrad is looking to raise INR 287.5 Cr (about $34.4 Mn) debt from financing platform EvolutionX Debt Capital. 

As per the startup’s regulatory filings accessed by Inc42, its members passed a resolution during an extraordinary general meeting to issue and allot 25 Lakh non-convertible debentures (NCDs) and 3.75 Lakh optionally convertible debentures (OCDs) to the investor. 

While 3.8 Lakh NCDs will be issued to EvolutionX Debt Capital India Fund I, 21.2 Lakh NCDs will be issued to EvolutionX Debt Capital Master Fund I for INR 1,000 apiece. Besides, 3.75 Lakh OCDs would be issued to EvolutionX Debt Capital India Fund I.

The startup said it plans to use the proceeds from the debt funding round to fuel its growth capital, fund operating expenses of the company, and for general corporate purposes.

The development was first reported by Entrackr. 

Earlier this year, it was reported that upGrad was looking to raise $100 Mn to acquire US-based education firm Udacity. While discussions were reportedly in advanced stages back then, there has been no update on it since then. 

Founded in 2015 by Screwvala, Mayank Kumar, Phalgun Kompalli and Ravijot Chugh, upGrad offers higher education courses and skilling programmes in collaboration with universities. 

The edtech unicorn has raised a total funding of over $672 Mn till date and counts the likes of Temasek, Lupa Systems, and International Finance Corporation among its investors. It last raised INR 300 Cr ($36.5 Mn) via a rights issue in March 2023.

In its last disclosed financial results for fiscal year 2022-23 (FY23), the startup’s operating revenue shot up 97% to INR 1,169.6 Cr from INR 595 Cr in the previous year. Its net loss surged 76% to INR 1,141.5 Cr during the year from INR 648.2 Cr in FY22.

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