Nearly 80% of the funds will be earmarked to finance the planned acquisition
upGrad founder Ronnie Screwvala, who holds a substantial 22.4% stake in the edtech firm, is expected to infuse his personal capital into the upcoming funding round
California-headquartered Udacity provides courses such as data engineering, business analytics, artificial intelligence, data science, product management and more
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Mumbai-based edtech unicorn upGrad is reportedly in advanced discussion to take over US education firm Udacity and is seeking a fundraise of up to $100 Mn to finance the deal.
Nearly 80% of the funds will be earmarked to finance the planned acquisition, ET reported.
upGrad founder Ronnie Screwvala, who holds a substantial 22.4% stake in the edtech firm, is expected to infuse his personal capital into the upcoming funding round.
The startup has also reached out to a host of external investors to secure around $50-60 Mn. The remaining investment is believed to come from existing investors.
As the details of the impending funding round are being ironed out, indications suggest that upGrad’s valuation is expected to remain flat, hovering around its last assessed value of $2.5 Bn.
Udacity, headquartered in California, provides courses such as data engineering, business analytics, artificial intelligence, data science, product management, and more.
Founded in 2015 by Screwvala, Mayank Kumar, Phalgun Kompalli and Ravijot Chugh, upGrad offers higher education courses and skilling programmes in collaboration with universities. It counts Temasek, Murdoch’s Lupa Systems, International Finance Corporation and IIFL as among its marquee investors.
To be sure, despite earlier discussions indicating a potential $100 Mn acquisition, upGrad is now poised to acquire Udacity for $80 Mn.
“The due diligence at Udacity is at a very advanced level now and law firms have been appointed who are in the middle of the process,” a person close to the development said as quoted in the report. “The new financing being planned is linked to the Udacity deal,” the person added.
upGrad’ earlier said its revenue soared 96% to INR 1,194 Cr during the FY23 from INR 608 Cr in the previous fiscal year on the back of strong growth in its paid-learners base.
The startup said its overall learner base crossed the 10 Mn mark in FY23, with the number of paid learners growing 54% year-on-year (YoY).
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