Indian edtech startup upGrad has made its foray into the test preparation market by acquiring Bengaluru-based coaching institute The Gate Academy (TGA) for an undisclosed amount.
With the acquisition, TGA will operate as a subsidiary of upGrad and will continue with its brand name and Ritesh Raushan will become its CEO.
The edtech startup also plans to invest over INR 100 Cr into this test preparation subsidiary and will be developing over 20K hours of content in multiple languages to provide access to at least one million test-takers annually, the company said in a statement.
upGrad, founded in 2015 by Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli and Ravijot Chugh, focuses on higher education, as well as helping working professionals develop proficiency in the most in-demand technical skills.
The company aims to help working professionals and individuals by providing them with university education online through structured programmes and facilities which include courses on deep technology, digital marketing, management, entrepreneurship certification among others. upGrad has over half-a-million users globally, of which 30K are paid learners.
upGrad cofounders Ronnie Screwvala & Mayank Kumar, said in a joint statement, “We’re thrilled to onboard Ritesh and team. TGA provides upGrad a non-linear growth opportunity in new-segment entry and deeper penetration in the semi-urban & rural markets, which is in line with our core vision of making Bharat employable by adopting the mantra of LifeLong Learning. With every strategic move, we are ensuring that upGrad leads from the front as India emerges as the teaching capital of the world.”
In August, upGrad had raised a debt of INR 50 Cr from IIFL Income Opportunities Fund – Series 2. Inc42 reported that the company had allotted 500,000 unlisted, secured and redeemable Non-Convertible Debentures at a face value of INR 1,000 each to IIFL Income Opportunities Fund – Series 2.
The company had also announced the reinstatement of full salaries for all its employees. Early, upGrad had announced that it would revoke all salary deductions from the second quarter of the financial year 2021, starting July.
upGrad, which had announced 30% salary deductions for its employees due to the financial disruption caused by the pandemic, said that it would return 100% of the amount deducted from employees’ salaries, besides announcing work from home (WFH) for all employees till the end of the year.
Ritesh Raushan, founder & CEO, The Gate Academy said, “We all are very excited to join hands with upGrad team. We aim to employ our extensive experience in both physical and online modes of teaching to create a world-class product that will bring fundamental changes in the way technology enables learning in the future.”