Indian edtech company, upGrad Education has its eyes set on an initial public offering (IPO) in the coming 18-24 months. The firm which made it to Unicorn club has raised $185 million from investors like International Finance Corp (IFC), Temasek Holdings Ltd and others, reaching a valuation of $1.2 billion.
Ronnie Screwvala, Co-founder and Chairman of upGrad, stated that 70% of the stakes were held by founders which might come down to 51% by the time the company is listed.
He continued that an ed-tech startup doesn’t require huge investment, and considers ROCE (return on capital employed) as a parameter that matters the most. He added that the company has no plans to raise money even after observing inbound interest from the funds.
As per credible sources, Screwvala claims that he doesn’t want small-cap or mid-cap stock and therefore expects upGrad to reach a critical mass prior to listing.
Presently, the firm is generating a revenue run rate of $250 million which is anticipated to cross $500 million by financial year 2023, after which it’ll appear for listing.
Apparently, established by Screwvala, Phalgun Kompalli, Mayank Kumar in 2015, upGrad provides higher learning and mid-career skill enhancing courses for learners between 18-50.
Screwvala mentions that the firm has 2 million users which it wishes to expand to 10 million by 2023. Furthermore, the expansion will include new products in segments via collaborations with universities, overseas expansion across the world.
He added that upGrad wishes to establish its roots as dominant player in Africa, Asia and Middle East. The business from abroad contributes around 10% in the entire revenue which is anticipated to rise to 50-55% in the coming months.
According to credible sources, in 2021, the edtech firm acquired video-learning service providers Impartus and Knowledge Hut. While last year, it took over Rekrut India and competitive test prep organization, The Gate Academy.