Online tutor upGrad will raise around $45 million from International Finance Corporation (IFC) to expand its services, said the two sides.
upGrad, the short name for upGrad Education Private Limited, has almost doubled its users in six months and aims to touch 10 lakh by the end of 2021. The company generated Rs 230 crore last fiscal, and aims to close this with an annual revenue run rate of Rs 1200 crore.
IFC, an investment arm of the World Bank, said it will make an equity investment of $45 million in the company, which was founded in early 2015. The company has got 21,500 paid learners and helped more than 370,000 individuals globally in five years, making it India’s largest online higher-education company based on gross revenue generated in 2018-19.
Founded by Ronnie Screwvala (currently serves as Executive Chairman) and Mayank Kumar (currently serves as Managing Director), upGrad is one of the leading players in edtech, offering certificates, diplomas and degrees in data, management, technology, law and other subjects.
IFC’s investment marks institutional financing round in India, where venture capital backing education technology companies is relatively limited. According to estimates, the Indian ed-tech industry is the second biggest in the world. Reports published before the outbreak of the Covid-19 pandemic suggested that the industry is likely to touch $3.2 billion by 2022, and lockdowns to contain the disease may strengthen it as people learn and take up online courses.