Edtech firm upGrad earmarks $250 mn for M&A

Mumbai headquartered edtech platform upGrad has earmarked $250 million for M&A (mergers and acquisition) deals over the next 7-9 months.  

 “We continue to build a very strong, integrated, connected model in higher education across multiple geographies. Personally, I am a strong believer that the whole is always bigger and more valuable than the sum of the parts.   

Outside of cash, we see a very strong value currency in our stock to look to merge/acquire companies with exceptional founders who will join us as fellow entrepreneurs to build this out over the next decade,” Ronnie Screwvala, co-founder and chairman of upGrad, said.  

Screwvala added that upGrad has identified specific segments as well as target companies, two of which will be announced over the next 60 days.  

The company will target digital learning providers with mentors and coaches as well as immersive short-form learning startups in markets like Indonesia and Vietnam and across Africa.  

Recent reports claim that upGrad would cross half-a-billion dollar Annual Revenue run rate (ARR) by March'22 and is looking to raise close to $400 million at a valuation of around $4 billion.  

This year upGrad went out for their maiden fund raise with Temasek and IFC and closed a cumulative $160 million raise, and at a valuation just south of being a unicorn.  

In April the edtech platform crossed the milestone of Rs 100 crore a month and achieved an annual revenue run rate (ARR) of Rs 1,200 crore.  

In 2020, upGrad grew by 100% in revenues and tripled its course offerings with three acquisitions.   

upGrad ic currently offering more than 100 courses in collaboration with global universities like Deakin Business School (Australia), Duke CE (US), Michigan State University (US), Liverpool Business School (UK), IIT Madras (India), IIM Kozhikode (India) and others.  The company claims to have impacted over 1 million total registered learners over 50 countries across the world.