upGrad Launches AI Incubator With INR 100 Cr Allocation

Edtech major upGrad has launched an incubator, ‘upGrad AI Incubator’, to back homegrown AI startups.

 With an initial allocation of INR 100 Cr, the Mumbai-based company plans to invest in 5-6 startups over the next few months, it said in a statement.

With this incubator, upGrad aims to drive product innovation in startups by providing them resources including infrastructure and seed capital, the statement added. 

Under this initiative, upGrad has made its first investment in a Bengaluru-based startup ZuAI. However, it did not disclose the financial terms of the deal.

This development comes days after upGrad signed an agreement with the Maharashtra government to set up AI excellence centres across the state with an initial investment of INR 2,150 Cr ($248.82 Mn).

Earlier this month, the edtech company roped in Dentsu’s former chief operating officer Neeraj Gera as the India head for enterprise delivery. Additionally, it also appointed former Amazon executive Neha Prasad Mullick as the vice president for enterprise sales in North America. 

Founded by Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli in 2015, upGrad offers online and hybrid skilling programmes, certifications, and bootcamps. It also facilitates diploma, master’s and executive doctorate programmes from top Indian and global universities, along with corporate skilling and recruitment services.

The company operates in several global markets including the UK, US, Middle East, India, Singapore and Vietnam.

Last year, Kumar stepped down from his position as a cofounder to float a new edtech venture, BorderPlus. Around the same time upGrad raised $60 Mn from Singapore state investment firm Temasek.

India’s AI space is booming and witnessing rapid adoption. For instance, earlier this week, finance minister Nirmala Sitharaman said that India is moving beyond merely leading the adoption of AI and is shaping how the technology is governed. 

Not just this, Indian states are also actively participating in being the dominant hub for AI. Maharashtra’s chief minister Devendra Fadnavis said that the state is working on a new AI policy as it wants to lead the ongoing AI revolution in the country.

Last week, the union government received more than 60 proposals from homegrown AI startups such as Sarvam AI, CoRover.ai and Ola’s Krutrim  for building an indigenously-designed and developed artificial intelligence (AI) foundational model.