Edtech unicorn UpGrad raises $225 million in funding, doubles valuation
Summary
ETS develops and administers standardized tests including the TOEFL (Test of English as a Foreign Language) and Graduate Record Examination (GRE).The family offices of Indian billionaires Lakshmi Mittal of steelmaker ArcelorMittal SA and Sunil Bharti Mittal of telecom operatorparticipated in the round, as did existing investors including Temasek Holdings Pte, said the person who asked not to be identified as the details are confidential.UpGrads fundraising bucks the trend. Indian edtech startups, particularly those in the K-12 segment, have shuttered operations, fired employees or curtailed expansion plans, after a temporary boost from pandemic-induced school closures. Venture capital investments globally have declined as technology valuations have suffered this year.Indias higher-education and upskilling startups, the niche UpGrad is in, have fared better by catering to older customers seeking expertise, an additional degree or help to crack the ultra-competitive entry tests for Indias elite engineering, medical and business schools.India will write the global higher-edtech story, Screwvala, the companys chairman, said over a video call. Theres an insatiable global appetite for upskilling and upgrading to diplomas, degrees and doctorates, all of which have measurable outcomes such as a new job, a raise or a promotion.Screwvala, 65, confirmed the funding amount but declined to comment on the valuation or investors. College students and working professionals in India will account for four-fifths of that, but in about three years, domestic and international sales will even out, he said.The Mumbai-based company spans several segments, from test prep to study abroad, and undergrad degrees to campus courses in 250 universities.