UpGrad eyes $40 m in external funding
, ET Bureau|
Updated: Jan 08, 2018, 09.46 AM IST
NEW DELHI: Online adult education and up-skilling startup UpGrad has begun discussions with potential investors to raise about $40 million (Rs 266.11 crore) in what will be its first round of external funding, as it looks to rapidly scale its operations.
The company, which is backed by media titan Ronnie Screwvala, has held discussions with about three investors — two financial and one strategic — which, if successful, could see the company scoring a valuation of about $400 million.
The round could close by the end of the first quarter of the current calendar year. Thus far, Screwvala has been the primary financial backer.
"We looked at the first mover advantage we had, but wanted to do things consecutively. However, we do now believe that the opportunity is too big. Plus, the speed at which our working professionals in India need the upgrading and uplearning, there is no choice but to look at things exponentially, and so have decided to open the company to a 10% dilution and capital raise for us to take all our initiatives," Screwvala told ET.
UpGrad primarily focuses on consumers and enterprises, and offers courses on data analytics, digital marketing, product management and entrepreneurship, among others. Till date, Screwvala has pumped in about Rs 100 crore into the company, and has committed an additional Rs 200 crore.
"The approximately Rs 260 crore to be raised will go into further building UpGrad's global technology platform, investing in courses and content facilities and studios, offline and online marketing, and towards the creation of up to 50 offline UpGrad XChange centres for offline engagement and networking," he added.
Also on the cards is the company's international expansion. In October last year, reports said the company was set to enter West Asia, Southeast Asia and Africa before stepping into more developed markets.
The company, which is backed by media titan Ronnie Screwvala, has held discussions with about three investors — two financial and one strategic — which, if successful, could see the company scoring a valuation of about $400 million.
The round could close by the end of the first quarter of the current calendar year. Thus far, Screwvala has been the primary financial backer.
"We looked at the first mover advantage we had, but wanted to do things consecutively. However, we do now believe that the opportunity is too big. Plus, the speed at which our working professionals in India need the upgrading and uplearning, there is no choice but to look at things exponentially, and so have decided to open the company to a 10% dilution and capital raise for us to take all our initiatives," Screwvala told ET.
UpGrad primarily focuses on consumers and enterprises, and offers courses on data analytics, digital marketing, product management and entrepreneurship, among others. Till date, Screwvala has pumped in about Rs 100 crore into the company, and has committed an additional Rs 200 crore.
"The approximately Rs 260 crore to be raised will go into further building UpGrad's global technology platform, investing in courses and content facilities and studios, offline and online marketing, and towards the creation of up to 50 offline UpGrad XChange centres for offline engagement and networking," he added.
Also on the cards is the company's international expansion. In October last year, reports said the company was set to enter West Asia, Southeast Asia and Africa before stepping into more developed markets.
