The startup has been promoted by media entrepreneur Ronnie Screwvala.

Indian edtech startup Upgrad has raised $120 million from Temasek, Singapore’s sovereign fund reports the Economic Times.

According to people knowledgeable of the matter, the startup could be valued as much as $575-675 million, post-money.

Upgrad

Upgrad has been founded by Ronnie Screwvala (who is also the executive chairman), Mayank Kumar, and Phalgun Kompalli.

Upgrad offers online education from various international universities, primarily in the K-12 education space. It includes multiple categories such as college and degrees, test preparation, and lifelong learning.

In 2020, it acquired The Gate Academy, a chain of coaching institutes headquartered in Bengaluru, for an undisclosed amount. It also acquired recruitment and staffing solutions firm Rekrut India during that year.

The startup claims to have earned a monthly revenue of Rs 100 crore ($13 million) in April 2020, implying an annual run rate of Rs 1,200 crore ($160 million).

Outlook

Screwvala told the ET that Upgrad is likely to clock 100% growth annually for many years.

“We think the post-K-12 segment is going to be much larger than the K-12 segment in coming years,” Screwvala said. “Online degrees, especially undergraduate degrees, are a highly scalable opportunity.”

Meanwhile, the edtech sector in India has benefited from huge VC investments following the onset of the pandemic.

Use of funds

According to Screwvala, Upgrad will use the latest funding for acquisitions in the sectors of higher education and working professionals.

The company also intends to expand into the US, UK, Middle East, and the Asia-Pacific.

IPO

Screwvala said he intended to go public in due course.

“When you’re a listed company, it changes your profile around the world,” he said.

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