Singapore-based investment company Temasek and upGrad co-founder and chairman Ronnie Screwvala invested in upGrad as the company closed its $80mn funding round, valuing at $2.25bn, according to an Economic Times report. While Temasek invested $60mn in the company, Screwvala bought Bharti Enterprises’ 1 per cent stake for $20mn.
“The funding has now closed. Ronnie also increasing his stake further shows the commitment with recent changes and the more hands-on role he is going to play going forward,” a source cited in the report said.
The source added that upGrad is currently doing a quarterly revenue of around Rs 600 crore, translating to about Rs 2,400 crore, for the ongoing financial year.
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Screwvala now owns a 45 per cent stake in the company. This coincides with the reports of upGrad co-founder and managing director Mayank Kumar exiting the company to launch his own venture.
Murdoch’s Lupa Systems, International Finance Corporation and IIFL are other major stakeholders in the start-up.
upGrad's net loss rose by 76 per cent to Rs 1,141 crore in FY23 from Rs 648.2 crore in the previous fiscal as per Inc42. It reported an operating revenue of Rs1,169.6 crore in FY23, an increase of 97 per cent from Rs 595 crore in FY22.
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upGrad was incorporated by Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli in 2015. In 2021, it become a unicorn with a valuation of $1.2bn. It has a presence in North America, Europe, the West Asia and Asia Pacific.
Securing Funding is an Uphill Task for the Sector
Edtech sector is struggling to secure funding as investor trust has faded away for a while now after the continuing downfall of Byju's post-pandemic.
According to data from Tracxn, edtech sector has secured a funding of $650mn as of now in 2024 in comparison with $4.1bn funding in 2021 and $2.4bn in 2022. The figure this year, however, is much better than that in the post-Covid years. Investment in the edtech start-ups was $315mn in 2023.
The sector is witnessing a recovery as Physics Wallah, an online edtech platform, has recently closed $210mn funding round led by Hornbill Capital, achieving a post-money valuation of $2.8bn. Another education firm Eruditus secured $150mn.
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