upGrad Nets Additional $60 Mn From Temasek

Edtech unicorn upGrad has reportedly raised an additional $60 Mn from Singapore state investment firm Temasek at a flat valuation of $2.25 Bn.

In a separate development, Upgrad’s founder and chairman, Ronnie Screwvala, has acquired Bharti Enterprises’ stake in the company for $20 Mn, according to an ET report.

Bharti Enterprises held a 1% stake in upGrad following the latter’s stock swap acquisition of skilling and training solutions firm Centum Learning in 2022.

Ronnie Screwvala, a serial entrepreneur known for founding UTV, now owns a 45% stake in upGrad. He is taking on a more prominent role at the edtech firm following the exit of cofounder Mayank Kumar.

The report added that Screwvala is planning to take upGrad public within the next 7-8 quarters.

“The funding has now closed. Screwvala’s decision to increase his stake further demonstrates his commitment, especially in light of recent changes and the more hands-on role he intends to play going forward,” a source told ET.

This also positions Screwvala as one of the few entrepreneurs with significant shareholding in a venture-backed startup, with Temasek and IFC among the company’s top investors.

Inc42 reached out to upGrad, and the story will be updated based on their responses.

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

The company counts Temasek, Murdoch’s Lupa Systems, International Finance Corporation and IIFL among its marquee investors.

Earlier this year, the Mumbai-based edtech unicorn was in advanced discussion to take over US education firm Udacity and is seeking a fundraise of up to $100 Mn to finance the deal. Back then, it also reached out to a host of external investors to secure around $50-60 Mn, while the remaining investment is believed to come from existing investors.

Meanwhile, upGrad aimed to raise INR 287.5 Cr (approximately $34.4 Mn) in debt from financing platform EvolutionX Debt Capital in late June to support its growth capital, cover operating expenses, and address general corporate needs. This funding development follows closely behind its peer, edtech unicorn Physics Wallah, which secured $210 Mn (around INR 1,756.7 Cr) in its Series B funding round led by Hornbill Capital, achieving a post-money valuation of $2.8 Bn.

The edtech startup’s net loss surged 76% to INR 1,141.5 Cr in the financial year 2022-23 (FY23) from INR 648.2 Cr in the previous fiscal year. 

upGrad reported an operating revenue of INR 1,169.6 Cr in FY23, an increase of 97% from INR 595 Cr, a year ago.