Leading Ed-tech platform upGrad acquires data science Institute Insofe in $33 Million Share Swap Deal
- ByStartupStory | May 2, 2022
Leading Ed-tech platform upGrad has acquired one of the top data science institutes in the country called the International School of Engineering or Insofe, in a $33 million share swap deal.
This development marks the Ed-tech giant’s seventh acquisition in the last couple of years.
As part of the transaction, Insofe’s investors and management will be taking a little under 1 percent equity in upGrad at a valuation of $2 billion. Insofe is touted to be a leader in data sciences, and artificial engineering courses is known for offering blended offline-online courses with 2 big facilities in the cities of Hyderabad and Bengaluru.
Ronnie Screwvala, co-founder and chairman, upGrad, commenting on the development said, “Insofe is based out of India but stands for global excellence in machine learning ,data science and artificial intelligence. The data and analytics courses do very well for upGrad. So, with this acquisition, we go into the next level of specialization,”
To further supplement organic growth, upGrad has chosen to pursue acquisitions, carefully handpicking a bunch of companies like Impartus, Knowledgehut, Rekrut India, Study Partners, Talentedge, to help create a meaningful bouquet of courses that will cater to the user’s education needs throughout their life stages.
Screwvala added that Upgrad will be a lifelong partner for anyone after K-12. “Whether it is undergrad or postgrad, a diploma or a short course, a degree from a top global institute or a doctorate, we want to be the destination of choice. We believe people will be in and out of courses throughout their lives in the future,” said Screwvala.
The acquisition will give upGrad an edge in ML and AI courses, which are becoming increasingly popular in India owing to rising demand for talent with these skills from big shot corporates and startups.
“Insofe’s depth in ML and AI coupled with upGrad’s partner and student base makes a powerful combination to assume a leadership position in AI education and research worldwide,” said Dakshinamurthy V Kolluru, co-founder and Chief Executive Officer, Insofe.
Upgrad is also at present raising another round of funds to fuel its international foray and acquisitions. The company is also on the lookout for more quality companies and is in talks to pick up a PE firm’s stake in a leading online education company. “Acquisitions are not for bragging but finding that promoter who is at a good stage in life, has worked 5-7 years building an interesting business but won’t be able to take it to 4 or 5 or 10 X in the next two years,” added Screwvala.
upGrad, since its inception in 2015, has clocked top-line growth of over 100–120%, and the ed-tech major expects to grow by 160–180% for the previous financial year (FY22), for which results have not been announced yet. This will largely be spurred by growth in its international markets as well as the successful integration of acquired companies. According to Screwvala, in FY22, upGrad’s revenue run rate is expected to come in at around USD 250-300 million and touch approximately USD 500 million in FY23.
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