Edtech Startup UpGrad joins Unicorn Club at Valuation of $1.2 billion
Ronnie Screwvala's upGrad, which focuses on higher education and upskilling working professionals, has joined India's coveted unicorn league - startups worth $1 billion or more.
The edtech announced that it has closed $185 million in external funding from Temasek Holdings, the International Finance Corporation (IFC), a member of the World Bank Group, and IIFL at a $1.2 billion valuation.
In April of this year, upGrad announced the first close of $120 million from Temasek, marking the firm's first external fund raise since its inception in 2015. In February, the edtech firm announced that it would raise approximately $45 million from IFC.
According to two people familiar with the discussions, the company is now in talks to raise another $400 million at a valuation of $4 billion. According to one of the people quoted above, the new round is expected to close in the coming weeks, with existing investors also participating.
As part of the round, IIFL has invested approximately $20 million. The fundraise means that upGrad's founders still own more than 70% of the company.
With this round, Grad becomes the third edtech to join the Indian unicorn startup league. Two Indian edtech companies targeting the kindergarten -12 (K-12) and test prep markets are already unicorns: Naspers and Tiger Global-backed Byju's and SoftBank-backed Unacademy.
Temasek, upGrad's largest external backer, also led Unacademy's $440 million Series H round last week, valuing the company at $3.44 billion.
This year, upGrad's entry brings the total number of Indian startups that have become unicorns to 21.
“We are very focussed on our path to being in the top 3-5 companies globally for edtech and serving the 1 billion workforce across the age group of 18 to 60 years. We are pleased with the investor interest ever since we opened up for a fund raise, and had our maiden raise from Temasek, followed by IFC and IIFL in the last 60 days," said Ronnie Screwvala, chairperson and Co-founder, upGrad confirming the news.
The edtech announced that it has closed $185 million in external funding from Temasek Holdings, the International Finance Corporation (IFC), a member of the World Bank Group, and IIFL at a $1.2 billion valuation.
In April of this year, upGrad announced the first close of $120 million from Temasek, marking the firm's first external fund raise since its inception in 2015. In February, the edtech firm announced that it would raise approximately $45 million from IFC.
According to two people familiar with the discussions, the company is now in talks to raise another $400 million at a valuation of $4 billion. According to one of the people quoted above, the new round is expected to close in the coming weeks, with existing investors also participating.
As part of the round, IIFL has invested approximately $20 million. The fundraise means that upGrad's founders still own more than 70% of the company.
With this round, Grad becomes the third edtech to join the Indian unicorn startup league. Two Indian edtech companies targeting the kindergarten -12 (K-12) and test prep markets are already unicorns: Naspers and Tiger Global-backed Byju's and SoftBank-backed Unacademy.
Temasek, upGrad's largest external backer, also led Unacademy's $440 million Series H round last week, valuing the company at $3.44 billion.
This year, upGrad's entry brings the total number of Indian startups that have become unicorns to 21.
“We are very focussed on our path to being in the top 3-5 companies globally for edtech and serving the 1 billion workforce across the age group of 18 to 60 years. We are pleased with the investor interest ever since we opened up for a fund raise, and had our maiden raise from Temasek, followed by IFC and IIFL in the last 60 days," said Ronnie Screwvala, chairperson and Co-founder, upGrad confirming the news.
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