Singapore’s sovereign wealth fund, Temasek, has injected an additional $60 million into higher education and upskilling startup Upgrad, maintaining its valuation at $2.25 billion. This fresh round of funding, as revealed by insiders, outlines the ongoing investor confidence in Upgrad’s business model, even as the broader edtech sector struggles with a bit of uncertainty.
In a parallel move, Ronnie Screwvala, founder and chairman of Upgrad, has bought out Bharti Enterprises’ 1% stake in the firm for $20 million. This buyout marks a crucial shift, giving Screwvala a 45% ownership stake in the company, which positions him as one of the few entrepreneurs to hold such a significant share in a venture-backed startup.
Screwvala’s deeper involvement in Upgrad comes at a time when co-founder Mayank Kumar has exited the firm. The seasoned entrepreneur is expected to play a more active, hands-on role as Upgrad gears up for an IPO in the next 7-8 quarters. “Ronnie increasing his stake further shows the commitment with recent changes and the more hands-on role he is going to play going forward,” said a source familiar with the matter. Investors like Temasek and IFC are among the prominent backers of Upgrad, which is currently generating quarterly revenues of approximately ₹600 crore, translating to a projected annual revenue of ₹2,400 crore for the current financial year.
This new $80 million funding round, which includes the $60 million from Temasek and the secondary transaction with Bharti Enterprises, marks one of the largest deals in the edtech space despite the broader market stress. Upgrad had previously secured $35 million in debt financing from Evolution X, a joint venture between DBS and Temasek.
One of the fastest-growing segments for Upgrad is its Enterprise vertical, which has expanded rapidly since the acquisition of Centum Learning in 2022. “Centum Learning is now part of Upgrad Enterprise, and that’s the fastest-growing vertical at Upgrad,” a source noted.
A report from Upgrad’s investor, 360 One, highlighted robust enterprise revenue growth with a healthy order book of ₹104 crore in Q4 FY24. The report also noted that Upgrad’s skilling and placement services businesses have turned profitable, while its consumer acquisition cost has improved from around 30% in FY23 to 22% in FY24. Revenue from non-university programs surged by 22% quarter-on-quarter (QoQ) and 81% year-on-year (YoY) in Q4 FY24.
With tie-ups across 20 tier-I and tier-II universities, Upgrad offers over 70 courses spanning critical areas such as data science, management, digital transformation, technology, and law. These partnerships ensure that Upgrad remains a dominant player in the edtech market, even as it continues to innovate and expand.
Indian Edtech Market Sees Strong Growth
The broader Indian edtech market, which saw a resurgence in 2024, is projected to maintain its upward trajectory. In the first half of 2024 alone, the sector witnessed a 96% growth in funding, with edtech companies raising $164 million, a marked increase from $81.9 million in the same period in 2023. This growth, tracked by market intelligence platform Tracxn, positions India as the third highest-funded edtech ecosystem globally, following the United States and China. With six unicorns, India’s edtech market stands as the second highest globally, only behind the US.
Despite the macroeconomic headwinds and a return to physical classrooms, online learning platforms and professional upskilling programs remain in high demand. Bengaluru continues to dominate the edtech landscape, accounting for over 64% of the total funds raised in the sector, followed by Delhi and Mumbai. The combination of technological advancements, supportive government policies like the National Education Policy 2020, and strong demand continues to fuel the sector’s growth.
However, not all segments are thriving. The once-booming test preparation sector, which had amassed $7 billion in funding, is experiencing a decline, with investors shifting their focus to professional education and vocational training. Nonetheless, the sector’s long-term outlook remains optimistic. Even though there was only one funding round exceeding $100 million in 2024, compared to multiple rounds in previous years, late-stage funding continues to dominate as startups evolve to meet the shifting demands of learners.
Notable funding rounds include PhysicsWallah, which closed a $210-million round in September, and executive education firm Eruditus, which secured $150 million at a $3.2 billion valuation. Other significant players in the edtech space include Talentedge, SimpliLearn, Talent Sprint, Great Learning, and Edureka.
The Edtech Players
In recent years, the edtech sector has witnessed explosive growth, with several companies emerging as major players, each carving out a niche in the competitive sector. Among the key names leading this digital learning revolution are upGrad, Talentedge, SimpliLearn, Talent Sprint, Great Learning, and Edureka.
Upgrad, co-founded by entrepreneur Ronnie Screwvala, has quickly positioned itself as a frontrunner in providing higher education and professional courses to individuals looking to upskill or reskill. Its tailored programs, often designed in collaboration with leading universities, have garnered widespread attention, particularly in fields like data science, machine learning, and management.
Talentedge, another prominent name, is making its mark by delivering cutting-edge courses across various domains in collaboration with some of the world’s leading educational institutions. It stands out for its live and interactive learning model, which bridges the gap between traditional learning methods and the growing demand for online education.
Meanwhile, SimpliLearn, with its focus on career advancement and skill development, is a favorite among professionals seeking certifications in highly specialized fields. Known for its practical, project-based approach, SimpliLearn has empowered countless learners to stay relevant in today’s fast-evolving job market.
Talent Sprint offers a unique blend of learning solutions, particularly in the areas of deep tech and financial technologies. Its programs cater to tech enthusiasts who aim to keep pace with innovations such as artificial intelligence, blockchain, and cybersecurity, making it a go-to platform for those with ambitions in the tech world.
Great Learning has also earned a strong reputation for its postgraduate programs. Known for its focus on applied learning, the company partners with top universities and companies, offering industry-recognized credentials in areas like AI, analytics, and cloud computing.
Lastly, Edureka has made a name for itself through its flexible and comprehensive online learning platform. It’s especially popular for its tech-centric courses, ranging from DevOps and software development to cybersecurity, enabling learners to upskill at their own pace with dedicated mentorship.
As the market matures, collectively, these companies are not only meeting the growing demand for online education but also reshaping the future of learning by offering accessible, high-quality education and professional development.
